Term
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Definition
| offering an assortment enables customers to choose from a wide selection of products, brands, sizes, and prices at one location |
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Term
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Definition
| to reduce transportation costs, manufacturers and wholesalers typically ship cases of product to retailers where they then offer the products in smaller quantities tailored to individual consumers' and households' consumption patterns |
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Term
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Definition
| retailers do this so consumers can keep a smaller inventory of products at home because they know local retailers will have the products available when they need more |
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Term
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Definition
| retailers do this to make it easier for customers to buy and use products |
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Term
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Definition
| companies that buy and store merchandise in large quantities from manufacturers and then resell the merchandise (usually in smaller quantities) to retailers |
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Term
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Definition
| a firm performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own distribution centers to supply its stores |
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Term
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Definition
| arises when a retailer performs some wholesaling and manufacturing activities, such as operating warehouses or designing private-label merchandise |
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Term
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Definition
| occurs when a manufacturer undertakes retailing and wholesaling activities, such as Apple operating its own retail stores |
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Term
| Stages To Integrate CSR Into Their Strategy |
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Definition
1. Engage only in CSR activities required by law
2. Companies engage in CSR activities that provide a short-term financial benefit to the company
3. Companies operate responsibly because it's the "right thing" to do
4. Companies operate responsibly because they believe these activities must be done for the "well-being" of everyone |
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Term
| Base/Bottom of the Pyramid (BoP) |
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Definition
| consumers at the lowest end of the income distribution |
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Term
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Definition
| identifies (1) the target market, or markets, tower which the retailer will direct its efforts; (2) the nature of the merchandise and serves the retailer will offer to satisfy the needs of the target market; and (3) how the retailer will develop unique assets that enable it to achieve long-term advantage over its competitors |
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Term
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Definition
| a set of decisions retailers make to satisfy customer needs and influence their purchase decisions |
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Term
| North American Industry Classification System (NAICS) |
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Definition
| a classification scheme to collect data on business activity in each country |
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Term
| Variety/Breadth of Merchandise |
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Definition
| the number of merchandise categories a retailer offers |
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Term
| Assortment/Depth of Merchandise |
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Definition
| the number of different items offered in a merchandise category |
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Term
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Definition
| each different item of merchandise |
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Term
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Definition
| a 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 |
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Term
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Definition
| the areas around the outer walls of a supermarket and include the dairy, bakery, meat, florist, produce, deli, and coffee bar. |
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Term
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Definition
| the practice of purchasing from factories that pay workers a living wage, considerably more than the prevailing minimum wage, and offer other benefits such as onsite medical treatment |
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Term
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Definition
| focuses on reducing the carbon footprint caused by the transportation of food throughout the world |
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Term
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Definition
| large (160,000 to 200,000 square feet), combination food (60-70%) and general merchandise (30-40%) stores |
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Term
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Definition
| 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 |
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Term
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Definition
| stores that provide a limited variety and assortment of merchandise at a convenient location in 3,000-5,000 square foot stores with speedy checkout |
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Term
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Definition
| retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise |
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Term
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Definition
| nondurable or consumable goods which have a shorter lifespan |
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Term
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Definition
| manufactured items that are expected to last several years |
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Term
| Full-Line Discoutn Stores |
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Definition
| retailers that offer a broad variety of merchandise, limited service, and low prices |
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Term
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Definition
| big-box stores that offer a narrow but deep assortment of merchandise |
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Term
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Definition
| by offering a complete assortment in a category, category specialists can "kill" a category of merchandise for other retailers |
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Term
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Definition
| stores that concentrate on a limited number of complementary merchandise categories and provide a high level of service |
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Term
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Definition
| a special type of resale store where merchandise is donated an proceeds go to charity |
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Term
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Definition
| a store that accepts used merchandise from people and pays them after it is sold |
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Term
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Definition
| specialty store that concentrate on health and beauty care (HBC) products |
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Term
| Extreme-Value Retailers/Dollar Stores |
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Definition
| small discount stores that offer a broad variety but shallow assortment of household goods, health and beauty care (HBC) products, and groceries |
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Term
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Definition
| a retailer that offers an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturers' suggested retail price (MSRP) |
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Term
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Definition
| end-of-season merchandise that will not be used in following seasons |
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Term
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Definition
| merchandise with minor mistakes in construction |
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Term
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Definition
| off-price retailers owned by manufacturers or retailers |
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Term
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Definition
| firms that primarily del services rather than merchandise, are a large and growing part of the retail industry |
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Term
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Definition
| a company that operates multiple retail units under common ownership and usually has centralized decision making for defining and implementing its strategy |
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Term
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Definition
| a contractual agreement in which the franchisor (the company) sells the rights to use its business trademark, service mark, or trade name, or another commercial symbol of the company, to the franchisee for a one-time franchise fee and an ongoing royally fee, typically expressed as a percentage of gross monthly sales |
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Term
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Definition
| the way a retailer sells and delivers merchandise and services to its customers |
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Term
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Definition
| using more than one channel to sell and deliver merchandise and services to consumers |
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Term
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Definition
| used when discussing multichannel retailing; it refers to a coordinated multichannel retail offering that provides a seamless customer experience when using all of the retailer's shopping channels |
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Term
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Definition
| the fastest growing channel involving retailers interacting with consumers via the Internet, whether they use a traditional computer or a laptop, a variety of sizes of tablets or a smartphone |
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Term
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Definition
| involves accessing the Internet using a smartphone |
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Term
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Definition
| a non store retail channel in which the retail offering is communicated to customers through a catalog mailed to customers |
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Term
| Direct-Response TV (DRTV) Channel |
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Definition
| a retail channel in which customers watch a TV ad that demonstrates merchandise and then place orders for that merchandise |
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Term
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Definition
| a long form of DRTV advertisement typically 30 t0 60 minutes long, that mixes entertainment with product demonstrations, |
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Term
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Definition
| a retail channel in which customers watch a TV network with programs that demonstrate merchandise and then place orders for that merchandise, usually by telephone or via the Internet |
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Term
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Definition
| a retail channel in which salespeople interact with customers face-to-face in a convenient location |
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Term
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Definition
| independent businesspeople serve as master distributors, recruiting other people to become distributors in their network |
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Term
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Definition
| develops when the firm and its program are designed to sell merchandise and services to other distributors, rather than to end-users |
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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
| automated retailing machines placed at convenient, high-traffic locations |
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Term
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Definition
1. Touching and Feeling Products
2. Personal Service
3. Risk Reduction
4. Immediate Gratification
5. Entertainment and Social Experience
6. Browsing
7. Cash Payment |
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Term
| Benefits of Internet Channels |
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Definition
1. Deeper and Broader Selection
2. More Information for Evaluating Merchandise
3. Personalization
4. Expand Market Presence
5. Provide Information to Improve Shopping Experience Across Channels |
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Term
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Definition
| when customers gather information from one channel, then buy from a channel hosted by a competitor |
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Term
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Definition
| when a consumer goes into a store to learn about different brands and products and then searches the Internet for the same product sold at a lower price |
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Term
| Three Approaches to Reduce Showrooming |
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Definition
1. Providing better customer service
2. Offering uniquely relevant information based on proprietary data the retailer has collected about the customers
3. Promoting private-label merchandise that can be purchased only from the retailer |
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Term
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Definition
| the steps consumers go through when buying a product or service |
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Term
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Definition
| when customers' desired level of satisfaction differs from their present level of satisfaction |
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Term
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Definition
| needs that accomplish a specific task |
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Term
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Definition
| needs for entertaining, emotional, and recreational experiences |
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Term
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Definition
| the pattern of buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers |
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Term
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Definition
| information in a customer's memory, such as names, images, and past experiences with different stores |
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Term
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Definition
| consist of information provided by a host of sources |
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Term
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Definition
| the percentage of customers who enter a store or access a website and then buy a product from that same store or website |
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Term
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Definition
| a purchase decision process involving a moderate amount of effort and time -- usually happens when customers have prior experience with the product or service and their risk is moderate |
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Term
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Definition
| a purchase decision process involving little or no conscious effort |
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Term
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Definition
| customers like and consistently buy a specific brand in a product category |
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Term
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Definition
| customers like and habitually visit the same retailer to purchase a type of merchandise |
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Term
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Definition
| includes one or more people whom a person uses as a basis of comparison for beliefs, feelings and behaviors |
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Term
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Definition
| the meaning, beliefs, morals, and values shared by most members of a society |
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Term
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Definition
| a group of customers who are attracted to the same retail mix because they have similar needs |
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Term
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Definition
| the retailer should know what to do to satisfy the needs for the consumers in the segment |
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Term
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Definition
| the retailer is able to determine which customers are in the market segment |
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Term
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Definition
| whether the market can generate sufficient profits to support the retailing mix activities based on market size and buying power |
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Term
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Definition
| the retailer can target promotions and other elements of the retail mix to consumers in the segment |
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Term
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Definition
| groups customers according to where they live |
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Term
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Definition
| groups consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education. The most common means of defining segments, because consumers in these segments can be easily identifies, their size can be determines, and the degree to which they can be reached by and are responsive to media can be easily accessed |
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Term
| Geodemographic Segmentation |
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Definition
| uses both geographic and demographic characteristics to classify consumers -- based on the principle that "birds of a feather flock together" |
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Term
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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 in which they live |
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Term
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Definition
| group customers seeking similar benefits |
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Term
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Definition
| uses multiple variables to identify customers in the target segment according to their benefits sought, lifestyles, and demographics |
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Term
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Definition
| a statement identifying (1) the retailer's target market, (2) the format and resources the retailer plans to use to satisfy the target market's needs, and (3) the bases on which the retailer plans to build a sustainable competitive advantage |
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Term
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Definition
| the market segment(s) toward which the retailer plans to focus its resources and retail mix |
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Term
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Definition
| the nature of the retailer's operations--its retail mix--that it will use to satisfy the needs of its target market |
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Term
| Sustainable Competitive Advantage |
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Definition
| an advantage the retailer has over its competition that is not easily copied by competitors and thus can be maintained over a long period of time |
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Term
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Definition
| customers are committed to buying merchandise and services from a particular retailer |
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Term
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Definition
| the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors |
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Term
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Definition
| used to represent the customer's image and preferences for retailers |
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Term
| Private-Label/Store/Own Brands |
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Definition
| products developed and marketed by a retailer and available only from that retailer |
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Term
Customer Relationship Management (CRM) /
Loyalty / Frequent Shopper Programs |
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Definition
| activities that focus on identifying and building loyalty with a retailer's most valued customers |
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Term
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Definition
| a group of consumers who have a shared involvement with a retailer |
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Term
| Human Resource Management |
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Definition
research has found that highly successful retail chains invest heavily in store employees, but still have low prices, solid financial performance, and better customer service than their competitors
under-investing in employees makes their operations more inefficient and, therefore, much less profitable |
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Term
| Two Reasons Location is so Important |
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Definition
1. It is the most important factor in determining which store a consumer patronizes
2. It is a sustainable competitive advantage because it is not easily duplicated |
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Term
| Market Penetration Growth Opportunity |
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Definition
| a growth opportunity directed toward existing customers using the retailer's present retailing format |
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Term
| Market Expansion Growth Opportunity |
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Definition
| involves using the retailer's existing retail format in new market segments |
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Term
| Retail Format Development Growth Opportunity |
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Definition
| an opportunity in which a retailer develops a new retail format with a different retail mix for the same target market |
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Term
| Diversification Growth Opportunity |
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Definition
| an opportunity in which a retailer introduces a new retail formate directed toward a market segment that's not currently served by the retailer |
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Term
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Definition
| diversification by retailers into wholesaling or manufacturing |
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Term
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Definition
| the small independent retailers |
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Term
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Definition
| when a retail firm invests in and owns a retail operation in a foreign country -- highest level of investment and exposes the retailer to the greatest risks but has greatest potential returns |
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Term
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Definition
| when the entering retailer pools its resources with a local retailer to form a new company in which ownership, control, and profits are shared |
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Term
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Definition
| a collaborative relationship between independent firms |
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Term
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Definition
| the retailer has limited control over the retail operations -- lowest risk and lowest potential return |
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Term
| Strategic Retail Planning Process |
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Definition
the set of steps a retailer goes through to develop a strategy and plan
describes how retailers sect target market segments, determine the appropriate retail format, and build sustainable competitive advantaes |
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Term
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Definition
| firms that do not have centralized management that determines what stores will be in a development, where the specific stores will be located, and how they will be operated |
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Term
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Definition
| where the shopping center developer and/or manager makes and enforces policies that govern store operations, such as the hours that a store must be opened. |
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Term
| Gross Leasable Area (GLA) |
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Definition
| the real estate industry's term for the toto floor area designed for the retailer's occupancy and exclusive use, including any basements, mezzanines, or upper floors |
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Term
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Definition
| the geographic area that encompasses most of the customers who would patronize a specific retail site |
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Term
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Definition
| retail locations for an individual, isolated store unconnected to other stores; however, they might be near other freestanding stores or a shopping center |
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Term
| Central Business District (CBD) |
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Definition
| the traditional downtown financial and business area in a city or town |
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Term
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Definition
| a low-income residential area within a large city |
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Term
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Definition
| the process of a previously functioning city, or part of a city, falling into disrepair |
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Term
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Definition
| the renewal and rebuilding of offices, housing, and retailers in deteriorating areas |
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Term
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Definition
| refers to the traditional downtown shopping area in smaller towns and secondary shopping areas in large cities and their suburbs |
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Term
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Definition
| a group of retile and other commercial establishments that are planned, developed, owned, and managed as a single property |
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Term
| Convenience, Neighborhood, and Community Shopping Centers |
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Definition
| attached rows of open-air stores, with onsite parking usually located in front of the stores |
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Term
| Convenience, Neighborhood, and Community Shopping Centers |
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Definition
| attached rows of open-air stores, with onsite parking usually located in front of the stores |
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Term
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Definition
| shopping centers that consist primarily of collections of big-box retail stores |
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Term
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Definition
| enclosed, climate-controlled, lighted shopping centers with retail stores on one or both sides of an enclosed walkway |
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Term
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Definition
| shopping malls with less than 800,000 square feet |
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Term
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Definition
shopping malls that are more than 800,000 square feet
are similar to regional centers but have more anchors, specialty stores, and recreational opportunities |
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Term
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Definition
| shopping centers that have an open-air configuration of specialty stores, entertainment, and restaurants, with design ambience and amenities |
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Term
| Mixed-Use Developments (MXDs) |
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Definition
| developments that combine several different uses into one complex including retail, office, residential, hotel, recreation, or other functions |
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Term
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Definition
| shopping centers that contain mostly manufacturers' and retailers' outlet stores |
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Term
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Definition
| a center with a unifying theme reflected in each store, both in architecture and the merchandise |
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Term
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Definition
| new shopping center developments communing enclosed malls, lifestyle centers, and power centers |
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Term
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Definition
| a pattern of buying both premium and low-priced merchandise |
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Term
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Definition
| when a consumer has a general idea about the type of product or service they want, but do not have a well-developed preference for a brand or model |
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Term
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Definition
| when consumers know what they want and will not accept a substitute |
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Term
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Definition
| US government uses this to regulate land uses in specific areas to prevent any interference with existing uses by residents or businesses, as well as encourage the preservation of a community's sense of identity |
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Term
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Definition
| legal restrictions that specify the type of building, signs, size and type of parking lot, and so forth, that can be used at a particular location |
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