Term
| what does retailing cover? |
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Definition
| all of the activities involved in the sale of products to final consumers |
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Term
| what is the nature of retailing and its rate of change related to? |
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Definition
| the stage and speed of a country's economic development |
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Term
| what is critical to the survival of retailers? |
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Definition
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Term
| if a retailer loses a customer to a competitor, who suffers? |
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Definition
the retailer
producers and wholesalers still make their sale regardless of which retailer sells the product |
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Term
| how many new retail ventures fail during the first year? |
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Definition
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Term
| what should a retailer do? |
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Definition
| carefully identify possible target markets and try to understand why these people buy where they do |
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Term
| what is the retailer's "product"? |
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Definition
| whole offering--assortment of goods and services, advice from salesclerks, convenience, and the like |
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Term
| what are usually very important in shaping the choice of a retailer? |
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Definition
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Term
| what are features of a retailer's offering that relate to economic needs? |
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Definition
convenience
product selection
special services
fairness in dealings
helpful information
prices |
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Term
| what are features of a retailer that relate to social and emotional needs? |
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Definition
social image
shopping atmosphere |
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Term
| when will the market fail? |
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Definition
| when the combination of economic needs and social and emotional needs doesn't provide superior value to some target market |
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Term
| what were the main retailers in the U.S. 150 years ago? |
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Definition
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Term
| what are most conventional retailers these days? |
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Definition
| single line or limit line stores--stores that specialize in certain lines of related products rather than a wide assortment |
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Term
| what is the main advantage of limited line retailers? |
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Definition
| they can satisfy some target markets better |
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Term
| what do specialty shops aim at? |
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Definition
| carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service |
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Term
| what philosophy do conventional retailers follow? |
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Definition
"buy low and sell high"
think that demand in their area is fixed |
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Term
| what idea do modern retailers accept? |
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Definition
| mass merchandising concept--retailers should offer low prices to get faster turnover and greater sales volumes--by appealing to larger markets |
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Term
| what does the survival of supermarkets depend on? |
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Definition
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Term
| what did discount houses offer? |
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Definition
| hard goods (cameras, TVs, and appliances) at substantial price cuts to customers who would go to the discounter's low rent store, pay cash, and take care of any service or repair problems themselves |
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Term
| what are mass merchandisers? |
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Definition
large, self service stores with many departments that emphasize "soft goods" (housewares, clothing, and fabrics) and staples (like health and beauty aids) but still follow the discount house's emphasis on lower margins to get faster turnover
i.e. Walmart and Target |
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Term
| what are supercenters (hypermarkets) |
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Definition
| very large stores that try to carry not only food and drug items but all goods and services that the consumer purchases routinely |
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Term
| since 1980, many retailers focusing on single line products have adopted what approach? |
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Definition
mass merchandisers'
ex: IKEA (furniture), Home Depot (home improvements), Circuit City, PetSmart, and Office Depot
called category killers because its so hard for less specialized retailers to compete |
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Term
| automated vending accounts for how much of total U.S. retail sales? |
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Definition
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Term
| in home shopping accounts for how much of the US's retail sales? |
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Definition
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Term
| telephone and direct-mail marketing targets who? |
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Definition
| time pressured, dual career families |
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Term
| internet retailing is in what stage and accounts for what percent of retailing sales dollars? |
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Definition
growth stage
4% of retailing sales dollars |
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Term
| what are the four distinct approaches used by different online retailers? |
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Definition
1. retailers who have brick and mortar stores at many locations often use a webside to supplement their stores and the other types of promo they use (target and home depot)
offer a more limited product assortment at the website
promotes select items that have the highest profit margins
2. some retailers take a strong multichannel approach and use their websites to complement their stores or catalogs
more common among retailers who have higher profit margins on the lines they sell (Williams-Sonoma)
3. among online-only retailers, some try to differentiate their offering primarily by being more efficient than competitors (i.e. Zappos)
need high sales volume to offset large investments
4. differentiate by being very focused on the specific needs of target customers, many of whom don't have similar offerings available in their local markets (L.L Bean)
typically use the web to supplement a catalog operation of limited number of stores
rely on targeted direct mail (or email) promo to acquire new customers |
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Term
| what does the wheel of retailing theory say? |
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Definition
| new types of retailers enter the market as low-status, low margin, low price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices |
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Term
| what do conventional retailers tend to specialize by? |
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Definition
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Term
| most modern retailers are moving towards what? |
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Definition
| scrambled merchandising--carrying any product lines they think can sell profitably |
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Term
| what is the main way for a retailer to achieve economies of scale? |
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Definition
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Term
| what is a corporate chain? |
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Definition
a firm taht owns and manages more than one store
account for about half of all retail sales |
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Term
| competitive pressure from corporate chains encouraged what? |
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Definition
| the development of both cooperative chains and voluntary chains |
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Term
| what are cooperative chain? |
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Definition
| retailer-sponsored groups--formed by independent retailers--that run their own buying organizations and conduct joint promotion efforts |
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Term
| what are voluntary chains? |
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Definition
| wholesaler sponsored groups that work with "independent" retailers |
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Term
| what is wholesaling concerned with? |
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Definition
| the activities of those that sell to retailers or other merchants, but don't sell in large amounts to final consumers |
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Term
| when are manufacturers classified as wholesalers by the U.S. Census Bureau? |
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Definition
| when they have manufacturers' sales branches--warehouses that producers set up at separate locations away from their factories |
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Term
| what type of wholesalers are the most numerous? |
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Definition
merchant wholesalers
they often specialize by certain types of products or customers
account for almost 90% of wholesaling establishments |
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Term
| what are the three types of service wholesalers? |
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Definition
general merchandise wholesalers
single-line (or general-line) wholesalers
specialty wholesalers |
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Term
| what are general merchandise wholesalers? |
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Definition
| service wholesalers that carry a wide variety of non-perishable items such as hardware, electrical supplies, furniture, drugs, cosmetics, and automobile equipment |
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Term
| what are single-line (or general-line) wholesalers? |
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Definition
service wholesalers that carry a narrower line of merchandise
ex: only food, apparel, or tools/supplies |
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Term
| what are specialty wholesalers? |
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Definition
| service wholesalers that carry a very narrow range of products and offer more information and service than other service wholesalers |
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Term
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Definition
own the products they sell, but do not actually handle, stock or deliver them
mainly involved in selling
they get order and pass them onto producers, then producer ships order directly to customer |
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Term
| what are agent middlemen? |
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Definition
wholesalers who do not own the products they sell
main purpose is to help in buying and selling
common in international trade |
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Term
| what are manufacturers' agents? |
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Definition
| sell similar products for several non-competing producers--for a commission on what is actually sold |
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Term
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Definition
usually have a temporary relationship with the buyer and seller while a particular deal is negotiated
useful when buyers and sellers don't come into the market very often |
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Term
| selling agents become what to each producer? |
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Definition
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Term
| what is a combination export manager? |
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Definition
| blend of manufacturers' agent and selling agent--handling the entire export function for several producers of similar but non-competing lines |
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