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| The condition that occurs when a market has homogenous (similar) products; many buyers and sellers, all having perfect knowledge of the market; and ease of entry for both buyers and sellers |
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| When a seller is the only one selling a particular product and sets its selling price accordingly |
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| A market situation that develops when either retailers sell different (heterogeneous) products that consumers consider substitutes for each other or sellers may be the only ones selling a particular brand but face competition from other retailers selling similar goods and services |
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| Oligopolistic Competition |
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| A market situation that when occurs the following conditions exist: essentially homogeneous products are sold (e.g., gasoline), there are relatively few sellers or many small firms who always follow the lead of the few large firms, and there is an exception that any action by one part will be noticed and reacted to by the other parties in the market |
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| When residents travel to larger communities to shop because their own communities have merchandise that is priced too high, have poor selection, or have poor service. |
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| Process by which a retailer distinguishes itself from competitors in specific ways in order to be the preferred provider for certain market segments |
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| When a market has too many stores to yield a fair return on investment; when the number of stores per thousand households gets too large |
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| When a market has too few stores to satisfactorily meet the needs of customers; when the number of stores per thousand households is small in comparison to other markets |
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| Retailers that carry only brands that they are able to get on special deals from manufacturers or close-out wholesalers |
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| A combination of supermarket and discount department store that carries more than 80,000 to 100,000 SKUs ranging from televisions to peanut butter and DVDs |
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| Recycled Merchandise Retailers |
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Definition
| Retailer that offers low prices on reused merchandise |
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| Retailer that offers monetary loans in exchange for an item of value; the pawner may purchase it back for the amount of the loan plus interest within a contracted period of time |
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| A retail establishment operated by a charitable organization for fund-raising purposes; usually prices are extremely low |
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| When two or more retailers of the same type (as defined by NAISC codes in the Census of Retail Trade) compete directly with each other for the same household dollars |
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| The market state when different types of retail outlets (as defined by NAICS codes) sell the same lines of merchandise and compete for the same limited number of consumer dollars |
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| When retailers intercept or divert customers from competing retailers |
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| The point where total revenues equal total expenses |
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| Wheel of Retailing Theory |
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| Theory that holds that new types of retailers enter the market as low-status, low-margin, and low-price operators before they enter a trading-up phase and acquire more sophisticated and elaborate facilities, often becoming less efficient; these retailers eventually enter the vulnerability phase and must raise prices and margins to cover rising costs-- becoming vulnerable to new types of low-margin retail competitors who progress through the same pattern |
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| The contraction and expansion of merchandise assortment over time in a retail store as a store moves back and forth between being a narrow line and a broad line retailer |
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| An identifiable cycle in which a retailer starts, grows, matures, and then declines |
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| Resource-Advantage Theory |
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Definition
| Argues that firms gain competitive advantage by offering superior value to customers and/or having lower costs of operating |
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| An establishment that buys and sells goods or services by offering them for bid, taking bids, and then selling merchandise to the highest bidder |
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| A secondhand store that offers used goods at lower cost than new products, with the seller only paying the store a portion of the sale proceeds when the item actually sells |
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| An online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide |
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