Term
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Definition
| (1) the degree to which customers can easily get into and out of a shopping center; (2) ability of the retailer to deliver the appropriate retail mix to customers in the segment |
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Term
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Definition
| The amount of money due to the retailer from selling merchandise on credit |
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Term
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Definition
| The amount of money owed to vendors, primarily for merchandise inventory |
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Term
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Definition
| Criteria for evaluating a market segment scheme indicating what the retailer should do to satisfy its needs |
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Term
|
Definition
A method of trade area analysis also known as the similar store or mapping approach. The analysis is divided into four steps:
(1) describing the current trade areas through the technique of customer spotting
(2) plotting the customers on a map
(3) defining the primary, secondary, and tertiary area zones
(4) matching the characteristics of stores in the trade areas with the potential new store to estimate its sales potential |
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Term
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Definition
| A large, well-known retail operation located in a shopping center or internet mall and serving as an attracting force for consumers to the center |
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Term
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Definition
| In site evaluations for accesssibility, barriers such as railroad tracks, major highways, or parks |
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Term
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Definition
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Term
|
Definition
| Economic resources, such as inventory or store fixtures, owned or controlled by an enterprise as a result of past transactions or events |
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Term
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Definition
The number of SKUs within a merchandise category
*also called "depth of merchandise" |
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Term
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Definition
| A retail channel in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card |
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Term
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Definition
| A form of vertical integration in which a retailer owns some or all of its suppliers |
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Term
| Bargaining Power of Vendors |
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Definition
| A characteristic of a market in which retailers are so dependent on large, important vendors that their profits are adversely affected |
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Term
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Definition
| Conditions in a retail market that make it difficult for firms to enter the market |
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Term
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Definition
| A method of segmenting a retail market on the basis of similar benefits sought in merchandise or services |
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Term
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Definition
| Large, limited service retailers |
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Term
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Definition
| A collection of adjacent census blocks that contain between 300 and 3,000 people that is the smallest unit for the sample data |
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Term
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Definition
| When goals are set at the bottom of the organization and filter up through the operating levels |
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Term
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Definition
Indicates customers like and consistently buy a specific brand in a product category.
They are reluctant to switch to other brands if their favorite brand isn't available |
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Term
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Definition
| Called "Variety": the number of different merchandise categories within a store or department |
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Term
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Definition
| A function performed by retailers or wholesalers in which they receive large quantities of merchandise and sell them in smaller quantities |
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Term
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Definition
| Legal restrictions describing the size and type of building, signs, type of parking lot, and so on that can be used at a particular location |
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Term
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Definition
| The stages customers go through to purchase merchandise or services |
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Term
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Definition
| A method of segmenting a retail market based on customer needs in a specific buying situation, such as a fill-in shopping trip versus a weekly shopping trip |
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Term
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Definition
| Using print related retailing that provides customers with safety and convenience from shopping at home; ability to place an order whenever they want; can take the catalog with them an browse whenever they would like. |
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Term
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Definition
| A discount retailer that offers a narrow but deep assortment of merchandise in a category and thus dominates the category from the custmers' perspective. also called a "Category Specialist" |
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Term
|
Definition
| A count of the population of a country as of a specified date |
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Term
|
Definition
| An area bounded on all sides by visible (roads, rivers, etc.) and/or invisibile (county, state boundaries) features that is the smallest geographic entity for which census data are available |
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Term
| Central Business District (CBD) |
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Definition
| The traditional downtown business area of a city or town |
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Term
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Definition
| Consumers' collecting information about products in their channels and they buying the product from its competitors |
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Term
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Definition
| Off-price retailer that sells a broad but inconsistent assortment of general merchandise as well as apparel and soft home goods, obtained through retail liquidations and bankruptcy proceedings |
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Term
|
Definition
(1) an offer at a reduced price to sell a group of slow-moving or incomplete stock
(2) an incomplete assortment, the remainder of a line of merchandise that is to be discontinued and so is offered at a low price to ensure immediate sale |
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Term
| Common Area Maintenance (CAM) |
|
Definition
| The common facilities maintenance that a shopping center management is responsible for, such as the parking area, providing security, parking lot lighting, outdoor signage for the center, advertising, and special events to attract consumers |
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Term
| Community Strip Shopping Center |
|
Definition
Same as "Neighborhood Strip Shopping Centers"
A shopping center that includes a supermarket, drugstore, home improvement center, or variety store.
These often include:
small stores, such as apparel, shoe, camera, and other shopping goods stores. |
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Term
| Comparable Store Sales Growth |
|
Definition
Also called "Same Store Sales Growth"
The sales growth in stores that have been open for over one year |
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Term
| Comparison Shopping Situation |
|
Definition
| A type of shopping situation whereby consuemrs have a general idea about the type of product or service they want, but they do not have a well developed preference for a brand or model |
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Term
|
Definition
| The degreee to which the fashion is consistent with existing norms, values, and behaviors |
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Term
|
Definition
| The frequency and inensity of reactions to actions undertaken by competitors |
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Term
|
Definition
| The ease wih which consumers can understand and use a new fashion |
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Term
|
Definition
| A method of segmenting a retail market using multiple variables, including benefits, sought, lifestyles, and demographics |
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Term
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Definition
| The amount of crowding of either cars or people |
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Term
|
Definition
| The set of alternatives the customer evaluates when making a merchandise selection |
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Term
| Convenience Shopping Situation |
|
Definition
| When consumers are primarilty concerned with minimizing their efforts to get the product or service they want |
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Term
|
Definition
| A store that provides a limited variety and assortment of merchandise at a convenient location in a 2,000- to 3,000-square-foot store with speedy checkout |
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Term
| Conventional Supermarkets |
|
Definition
| A self-service food store that offers groveries, meat, and produce with limited sales of non-food items, such as health and beauty aids and general merchandise |
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Term
|
Definition
| Percentage of consumers who buy the product after viewing it |
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Term
| Corporate Social Responsibility (CSR) |
|
Definition
| Voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and teh concerns of its stakeholders |
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Term
| Cost of Goods Sold (COGS) |
|
Definition
| the amount a retailer pays to vendors for the merchandise the retailer sells |
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Term
|
Definition
| A clause in a leasing contract that requires a certain percentage of shopping center be leased, while others name speific retailers or types of retailers that are to remain open |
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Term
|
Definition
| When sales associates in one department attempt to sell complementary merchandise from other departments to their customers |
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Term
|
Definition
| A patttern of buying both premium and low-priced merchandise or patronizing expensive, status-oriented retailers and price-oriented retailers |
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Term
|
Definition
| The meaning and values shared by most members of a society |
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Term
|
Definition
| The principle that a cluster of similar and complementary retailing activities will generally have greater drawing power than isolated stores that engage in the same retailing activities |
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Term
|
Definition
| Cash or any assets that can normally be converted into cash within one year |
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Term
|
Definition
| short-term assets divided by short-term liabilities; it evaluates the retailer's ability to pay its short-term debt obligations, such as accounts payable (payments to suppliers) and short-term loans payable to a bank, with short-term assets such as cash, accounts receivable, and inventory. |
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Term
|
Definition
| Customers' commitment to shopping at a store |
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Term
|
Definition
| A technique used in trade area analysis that "spots" (locates) residences of customers for a store or shopping center |
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Term
|
Definition
| The retailer's short- and long-term debt divided by the value of the owners' or stockholders' equity in the firm. |
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Term
|
Definition
| A method of segmenting a retail market that groups consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education |
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Term
|
Definition
| A retailer that carries a wide variety and deep assortment, offers considerable customer services, and is organized into separate departments for displaying merchandise |
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Term
|
Definition
|
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Term
|
Definition
| A retail store in which the merchandise, selection, presentation, pricing, or other unique features acts as a magnet for customers |
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Term
|
Definition
| The investment and ownership by a retail firm of a division or subsidiary that builds and operates stores in a foreign country |
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Term
|
Definition
| same as non-store selling; |
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Term
| Direct-Response Advertising |
|
Definition
| Advertisements on TV and radio that describe products and provide an opportunity for customers to order them |
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Term
|
Definition
| When a manufacturer sells directly to consumers, thus competing directly with its retailers |
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Term
| Diversification Growth Opportunity |
|
Definition
| A strategic investmeent opportunity that involves and entirely new retail format directed toward a market segment not presently being served |
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Term
|
Definition
| Specialty retail store that concentrates on pharmaceuticals and health and personal grooming merchandise |
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Term
| Earnings Before Interest and Taxes (EBIT) |
|
Definition
| A measure of the profitability from continuing operations of a retailer and is a useful predictor of the retailer's profitability in the future |
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Term
|
Definition
| A retail format in which the retailers communicate with customers and offer products and services for sale over the internet |
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Term
|
Definition
| same as electronic retailing |
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Term
|
Definition
| A system or code of conduct based on universal moral duties and obligations that indicate how one should behave |
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Term
| Everyday Low Pricing (EDLP) |
|
Definition
| A pricing strategy that stresses continuity of retail prices at a level somewhere between the regular nonsale price and the deep-discount sale prices of the retailer's competitors |
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Term
|
Definition
| A clause in a lease that prohibits the landlord from leasing to retailers selling competing products |
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Term
|
Definition
| A buying process in which customers spend considerable time at each stage of the decision-making process because the decision is important and they have limited knowledge of alternatives |
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Term
| Extraordinary Nonrecurring Expenses |
|
Definition
| Expenses that arise only during the year in which they are incurred; for example: expenses a store might occur each year as a growing retailer opens a new store |
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Term
| Extreme-Value Food Retailer |
|
Definition
| same as limited assortment supermarkets |
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Term
|
Definition
| small, full-line discount stores that offer a limited merchandise assortment at very low prices |
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Term
|
Definition
| Outlet store owned by a manufacturer |
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Term
|
Definition
| Purchasing practices that require producers to pay workers a living wage, well more than the prevailing minimum wage, and offer other benefits, like onsite medical treatment |
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Term
|
Definition
| A type of product or a way of behaving that is temporarily adopted by a large number of consumers because the product, service, or behavior is considered to be socially appropriate for the time and place |
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Term
|
Definition
| Assets that require more than a year to convert to cash |
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Term
|
Definition
| A lease that requires the retailer to pay a fixed amount per month over the life of the lease |
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Term
|
Definition
| A form of vertical integration in which a manufacturer owns wholesalers or retailers |
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Term
|
Definition
| A contractual agreement between a franchisor and a franchisee to operate a retail outlet using a name and format developed and supported by the franchisor |
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Term
|
Definition
| A retail location that is not connected to other retailers |
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Term
| Frequent Shopper Programs |
|
Definition
A reward and communication program used by a retailer to encourage continued purchases from the retailer's best customers
(Tied to "Loyalty Programs") |
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Term
|
Definition
| A supermarket that is smaller than a traditional supermarket (30,000 versus 40,000 square feet), is more convenient, has less space devoted to packaged goods, but more space devoted to fresh produce, meat, and other fresh items |
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Term
|
Definition
|
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Term
|
Definition
| Retailers that offer a borad variety of merchandise, limted service, and low prices |
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Term
|
Definition
| A process in which old buildings are torn down or restored to create new offices, housing developments, and retailers |
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Term
| Geodemographic Segmentation |
|
Definition
| A market segmentation system that uses both geographic and demographic characteristics to classsify consumers |
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Term
| Geographic Information System (GIS) |
|
Definition
| A computerized system that enables analysts to visualize information about their customers' demographics, buying behavior, and other data in a map format |
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Term
|
Definition
Segmentation of potential customers by where they live.
A retail market can be segmented by countries, states, cities, and neighborhoods.
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Term
|
Definition
| A lease that requires rent to increase by a fixed amount over a specified period of time |
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Term
|
Definition
| The difference between the price the customer pays for merchandise and the cost of the merchandise (the price the retailer paid the supplier of the merchandise). More specifically, gross margin is net sales minus cost of goods sold. |
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Term
|
Definition
|
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Term
|
Definition
| A purchase decision involving little or no conscious effort |
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Term
|
Definition
| Needs motivating consumers to go shopping for pleasure |
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Term
|
Definition
| A major value-providing activity performed by retailers whereby products will be available when consumers want them |
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Term
|
Definition
| A trade area analysis model used to determine the probability that a customer residing in a particular area will shop at a particular store or shopping center |
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Term
|
Definition
| Large (100,000 - 300,000 square feet) combination food (60-70%) and general merchandise (30-40%) retailer |
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Term
|
Definition
A criteria for evaluating market segments in which retailers must be able to identify the customers in a target segment for the segmentation scheme to be effective.
By identifying the segment, it allows retailers to determine:
(1) the segment's size and,
(2) with whom the retailer should communicate when promoting its retail offering |
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Term
|
Definition
| A buying decision made by customers on the spot after seeing the merchandise |
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Term
|
Definition
| TV programs, typically 30 minutes long, that mix entertainment with product demonstrations and solicit orders placed by telephone from consumers |
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Term
|
Definition
| The stage in the buying process in which a customer seeks additional information to satisfy a need |
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Term
|
Definition
| same as proprietary store credit card system |
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Term
|
Definition
| Typically a high-density urban area consisting of apartment buildings populated primarily by ethnic groups |
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Term
|
Definition
| A performance measure used to assesss the amount of resources or money used by the retailer to achieve outputs |
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Term
|
Definition
| Information in a customer's memory such as names, images, and past experiences with different stores |
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Term
|
Definition
| same as electronic retailing |
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Term
|
Definition
| Competition between retailers that sell similar merchandise using different formats, such as discount and department stores |
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Term
|
Definition
| Competition between the same type of retailers (e.g., Kroger versus Safeway) |
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Term
|
Definition
| Net sales divided by average retail inventory; used to evaluate how effectively managers utilize their investment in inventory |
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Term
|
Definition
| merchandise that has minor mistakes in construction |
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Term
|
Definition
In the case of global expansion, an entity formed when the entering retailer pools its resoures with a local retailer to form a new company in which ownership, control, and profits are shared.
*More generally, any business venture in which two or more firms pool resources to form a new business entity* |
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Term
|
Definition
A copy of the latest styles displayed at designer fashion shows and sold in exclusive specialty stores.
*These copies are sold at lower prices through retailers targeting a broader market* |
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Term
|
Definition
| Obligations of a retail enterprise to pay chase or other economic resources in return for past, present, and future benefits |
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Term
|
Definition
| Refers to how people live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world they live in |
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Term
|
Definition
| A shopping center with an outdoor traditional streetscape layout with sit-down restaurants and a conglomeration of specialty retailers |
|
|
Term
|
Definition
| A method of segmenting a retail market based on how consumers live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world they live in |
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Term
|
Definition
| A purchase decision process invloving a moderate amount of effort and time. Customers engage in this type of buying process when they have some prior experience with the product or service and their risk is moderate |
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|
Term
| Limited-Assortment Supermarket |
|
Definition
| A supermakret offering a limited number of SKUs |
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|
Term
|
Definition
|
|
Term
|
Definition
| Focuses on reducing the carbon footprint caused by the transportation of food throughout the world |
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|
Term
|
Definition
| a program set up to reward customers with incentives such as discounts on purchases, free food, gifts, or even cruises or trips in return for their repeated business |
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Term
|
Definition
| The central business district located in the traditional shopping area of smaller towns, or a secondary business district in a suburb or within a larger city |
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|
Term
| Maintenance-Increase-Recoupment (lease) |
|
Definition
A provision of a lease that can be used with either a percentage or straight lese.
This type of lease allows the landlord to increase the rent if insurance, property taxes, or utility bills increase beyond a certain point |
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|
Term
| Market Expansion Growth Opportunity |
|
Definition
| A strategic investment opportunity that employs the existing retailing format in new market segments |
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|
Term
| Market Penetration Growth Opportunity |
|
Definition
| An investment opportunity strategy that focuses on increaseing sales to present customers using the present retailing format |
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Term
|
Definition
A theory of how fashion spreads that suggests that each social class has its own fashion leaders who play a key role in their own social networks.
*Fashion information trickles across social classes rather than down from the upper classes to the lower classes* |
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Term
|
Definition
| Communicating with and even selling to customers through wireless handheld devices, such as cellular phones and personal digital assistants |
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Term
|
Definition
| Small, temporary selling spaces typically located in the walkways of enclosed malls, airports, train stations, or office building lobbies |
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|
Term
| Metropolitan Statistical Area (MiSA) |
|
Definition
| A city with only 10,000 inhabitants in its core urban area |
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Term
|
Definition
| A broad description of teh scope of activities a business plans to undertake |
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|
Term
| Mixed-Used Development (MXD) |
|
Definition
| Development that combines several uses in one complex - for example, shoppin center, office tower, hotel, residential complex, civic center, and convention center |
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|
Term
| Multiattribute Attitude Model |
|
Definition
A model of customer decision making based on the notion that customers see a retailer or a product as a collection of attributes or characteristics.
The Model can also be used for evaluating a retailer, porudct, or vendor.
The model uses a wieghted average score based on importance of various issues and performance on those issues |
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|
Term
| Multilevel System (Network) |
|
Definition
| A retail format in which people serve as master distributors, recruiting other people to become |
|
|
Term
|
Definition
| A barrier, such as a river or mountain, that impacts accessibility to a site |
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|
Term
| Neighborhood Strip Shopping Center |
|
Definition
A shopping center that includes a supermarket, drugstore, home improvement center, or a variety store.
Neighborhood centers often include small stores, suh as apparel, shoe, camera, and other shopping goods stores |
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|
Term
|
Definition
| Profit a firm makes divided by its net sales |
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|
Term
|
Definition
| The total number of dollars received by a retailer after all refunds have been paid to customers for returned merchandise |
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|
Term
| North American Industry Classification System (NAICS) |
|
Definition
| Classificatio of retail firms into a hierarchical set of six-digit codes based on the types of products and services they produce and sell |
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Term
|
Definition
| The degree to which a new fashion is visible and easily communicated to others in a social group |
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|
Term
|
Definition
| A retailer that offers an inconsistent assorment of brand-name, fashion-oriented soft goods at low prices |
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|
Term
|
Definition
| A combination of mall, lifestyle, and powre center components in a unified, open-air layout |
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|
Term
|
Definition
| same as electronic retailing |
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|
Term
|
Definition
| Costs, other than the cost of merchandise, incurred in the normal course of doing business, such as salaries for sales associates and managers, advertising, utilities, office supplies, and rent |
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|
Term
|
Definition
| also called EBIT; a measure of profitability from continuing operations of a retailer and useful predictor of retailer's profitability in the future |
|
|
Term
|
Definition
| Typically soters owned by retail chains or manufacturers that sell excess and out-of-season merchandise at reduced prices |
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|
Term
|
Definition
| Off-price retailer owned by a manufacturer or a department or specialty store chain |
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|
Term
|
Definition
| A building or kiosk that is in the parking lot of a shopping center but isn't physically attached to a shopping center |
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|
Term
|
Definition
| Measure that assesses the results of retailers' investment decisions |
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Term
|
Definition
| same as private-label brand |
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|
Term
|
Definition
| A store that does not create its own traffic and whose trade area is determined by the dominant retailer in the shopping center or retail area |
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|
Term
|
Definition
Salespeople encourage people to act as hosts and invite friends or coworkers to a "party" at which the merchandise is demonstrated.
The host or hostess receives a gift or commission for arranging the meeting |
|
|
Term
|
Definition
| A lease in which rent is based on a percentage of sales |
|
|
Term
| Percentage Lease with a Specified Maximum |
|
Definition
| A lease that pays the lessor, or landlord, a percentage of sales up to a maximum amount |
|
|
Term
| Percentage Lease with a Specified Minimum |
|
Definition
| The retailer must pay a minimum rent no matter how low sales are |
|
|
Term
|
Definition
| Stores in temporary locations that focus on new products or a limited group of products |
|
|
Term
|
Definition
The design and implementation of a retail mix to create in the customer's mind an image of the retailer relative to its competitors
Also Called "Brand Building" |
|
|
Term
|
Definition
| The evaluation of merchandise or services after the customer has purchased and consumed them |
|
|
Term
|
Definition
| Shopping center that is dominated by several large anchors, including discount stores (target), off-price stores (Marshalls), warehouse clubs (Costco), or category specialists such as Home Depot, Office Depot, Circuit City, Best Buy, Toys "R" Us. |
|
|
Term
|
Definition
| The areas around the outside walls of supermarket that have fresh merchandise categories |
|
|
Term
|
Definition
| The geographic area from which a store or shopping center derives 50 to 70 percent of its customers |
|
|
Term
|
Definition
Products developed and marketed by a retailer and only available for sale by that retailer.
Also called "STORE BRANDS" |
|
|
Term
|
Definition
| The ratio of an output to an input determining how effectively a firm uses a resource |
|
|
Term
|
Definition
| A clause in a lease that keeps a landlord from leasing to certain kinds of tenants |
|
|
Term
| Proprietary Store Credit Card |
|
Definition
| A system in which credit cards have the store's name on them and the accounts receivable are administered by the retailer; also known as "in-house credit system" |
|
|
Term
|
Definition
| Refers to how people live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world they live in |
|
|
Term
|
Definition
| When the firm and its program are designed to sell mercandise and services to other distributors rather than to end users |
|
|
Term
|
Definition
| A requirement of a viable market segment that the retailer can target promotions and other elements of the retail mix to the consumers in that segment |
|
|
Term
|
Definition
| One or more people whom a person uses as a basis of comparison for his or her beliefs, feelings, and behaviors |
|
|
Term
|
Definition
| Shopping malls less than 1 million square feet |
|
|
Term
|
Definition
| A statistical approach for evaluating retail locations based on the assumption that factors that affect the sales of existing stores in a chain will have the same impact on stores located at new sites being considered |
|
|
Term
| Related Diversification Growth Opportunity |
|
Definition
| A diversification opportunity strategy in which the retailer's present offering and makret share something in common with th emarket and format being considered |
|
|
Term
|
Definition
| A firm that consists of multiple retail units under common ownership and usually has some centralization of decision making in defining and implementing its strategy |
|
|
Term
|
Definition
| The way a retailer sells and delivers merchandise and services to its customers |
|
|
Term
|
Definition
| The retailers' type of retail mix (nature of merchandise and services offered, pricing policy, advertising and promotion program, approach to store design and visual merchandising, and typical location) |
|
|
Term
| Retail Format Development Growth Opportunity |
|
Definition
| An investment opportunity strategy in which a retailer offers a new retail format - a format involving a different retail mix - to the same target market |
|
|
Term
|
Definition
| A group of consumers with similar needs (a market segment) and a group of retailers using a similar retail format to satisfy those consumer needs |
|
|
Term
|
Definition
| A group of customers whose needs will be satisfied by the same retail offering becaue they have similar needs and gro through similar buying processes |
|
|
Term
|
Definition
| The combination of factors used by a retailer to satisfy customer needs and influence their purchase decisions; includes merchandise and services offered, pricing, advertising and promotions, store design and location, and visual merchandising |
|
|
Term
|
Definition
A statement that indicates
(1) the target market toward which a retailer plans to commit its resources,
(2) the nature of the retail offering that the retailer plans to use to satisfy the needs of the target market,
(3) the bases upon which the retailer will attempt to build a sustainable competitive advantage over competitors |
|
|
Term
|
Definition
| A business that sells products and services to consumers for their personal and family use |
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| A set of business activities that adds value to the products and services sold to consumers for their personal or family use |
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| A management orientation that holds that the key task of a retailer is to determine the needs and wants of its target markets and direct the firm toward satisfying those needs and wants more effectively and efficiently than competitors do |
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| Net profit after taxes divided by total assets |
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| The sales growth in stores that have been open for over one year |
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| A postconsumption evaluation of the degree to which a store or product meets or exceeds customer expectations |
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| Cost advantages due to the size of a retailer |
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| An offering of merchandise not typically associated with the store type, such as clothing in a drugstore |
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| The geographic area of secondary importance in terms of customer sales, generating about 20% of a store's sales |
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| Selling, General, and Administration (SG&A) Expenses |
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| Operating expenses, plus the depreciation and amortization of assets |
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Organization that offers consumers services rather than merchandise.
Examples include:
banks, hospitals, health spas, doctors, legal clinics, entertainment firms, and universities |
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| Share of Customers' Wallets |
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| The % of total purchases made by a customer in a store |
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| A group of retail and other commercial establishments that is planned, developed, owned, and managed as a single property |
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| Enclosed, climate-controlled, lighted shopping centers with retail stores on one or both sides of an enclosed walkway |
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| An analysis of the opportunities and threats in the retail environment and the strengths and weaknesses of the retail business relative to its competitors |
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| A part of some leases that stipulates how much the percentage of sales paid as rent will decrease as sales go up |
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| Shopping experiences when consumers know what they want and will not accept a substitute |
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| A type of store concentrating on a limited number of complementary merchandise categories and providing a high level of service |
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The smallest unit available for keeping inventory control.
- In soft goods merchandise, an SKU usually means a size, color, and style |
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| Customers who like a store so much that they actively share their positive experiences with friends and family |
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| same as "private-label brand" |
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| Collaborative relationship in which partners make significant investments to improve both parties' profitability |
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A tool used for planning a retailer's financial strategy based on both margin management (net profit margin) and asset management (asset turnover).
- Using the SPM, a retailer's objective is to achieve a target return on assets |
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| Strategic Retail Planning Process |
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The steps a retailer goes through to develop a strategic retail plan.
- It describes how retailers select target market segments, determine the appropriate retail format, and build sustainable competitive advantages |
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| Strengths and Weaknesses Analysis |
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| A critical aspect of the situation audit in which a retailer determines its unique capabilities - its strengths and weaknesses relative to its competition |
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| A shopping center that usually has parking directly in front of the stores and does not hae enclosed walkways linking the stores |
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A distinctive group of people within a culture.
- Members of a subculture share some customs and norms with the overall society but also have some unique perspectives |
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| A theory of how fashion spreads that suggests that subcultures of mostly young and less affluent consumers, such as motorcycle riders and urban rappers, have started fashions for such things as colorful fabrics, t-shirts, sneakers, jeans, black leather jackets, and surplus military clothing |
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| Large store (150,000 to 220,000 square feet) combining a discount store with a supermarket |
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| Shopping center that is similar to a regional center, but because of its larger size, it has more anchors and a deeper selection of merchandise, and it draws from a larger population base |
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| A set of firms that make and deliver a given set of goods and services to the ultimate consumer |
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| Sustainable Competitive Advantage |
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| A distinct competency of a retailer relative to its competitors that can be maintained over ao considerable time period |
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| The market segment(s) toward which the retailer plans to focus its resources and retail mix |
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| A retail format in which customers watch a TV program demonstrating merchandise and then place orders for the merchandise by phone |
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| The outermost ring of a trade area; includes customers who occasionally shop at the store or shopping center |
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| A shopping center that typically employs a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, their merchandise |
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| One side of the process of developing an overall retail strategy where goals are set at the top of the organization and filter down through the operating levels |
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| A geographic sector that contains potential customers for a particular retailer or shopping center |
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| The balance between a substantial number of cars and not so many that ongestion impedes access to the store |
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| The costs and commitment required to initially adopt a fashion |
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A theory of how fashion spreads that suggests that the fashion leaders are consumers with the highest social status - wealthy, well-educated consumers.
- After they adopt a fashion, the fashion trickles down to consumers in lower social classes.
- When the fashion is accepted in the lowest social class, it is no longer acceptable to the fashion leaders in the highest social class |
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| Unrelated Diversification Growth Opportunity |
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Diversification in which there is no commonality between the present business and the new business
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| Needs motivating consumers to go shopping to accomplish a specific task |
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A tool used to categorize customers into eight lifestyle segments.
-Based on responses to surveys conducted by SRI consluting business intelligence |
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| The number of different merchandise categories within a store or department |
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| Vending Machine Retailing |
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| A nonstore format in which merchandise or services are stored in a machine and dispensed to customers when they deposit cash or use a credit card |
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| An example of diversification by retailers involving investments by retailers in wholesaling or manufacturing merchandise |
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| Customers' ability to see the store and enter the parking lot safely |
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| A retailer that offers a limited assortment of food and general merchandise with little service and low prices to ultiamte consumers and small businesses |
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| A merchant establishment operated by a concern that is primarily engaged in buying, taking title to, usually storing, and physically handling goods in large quantities, and reselling the goods (usually in smaller quantities) to retailers or industrial or business users |
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| Wholesale-Sponsored Voluntary Cooperative Group |
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| An organization operated by a wholesaler offering a merchandise program to small, independent retailers on a voluntary basis. |
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| The regulation of the construction and use of buildings in certain areas of a municipality. |
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