Term
| Retail businesses try to _______ operating expenses and _______sales. |
|
Definition
|
|
Term
| What are the five functional areas of a retail company? |
|
Definition
| Merchandising,finance, store operations,personnel(human resources) and promotion. |
|
|
Term
| What is the function of merchandising? |
|
Definition
| planning,buying and selling merchandise. |
|
|
Term
| What is the function of the finance department? |
|
Definition
| Supervising teh budget and overseeing spending activities. |
|
|
Term
| What is the function of store operations? |
|
Definition
| Managing and maintaining the store, customer service,security. |
|
|
Term
| What is the function of human resources? |
|
Definition
| Hiring and training employees,benefits,performance evaluations (reviews). |
|
|
Term
| What is the function of promotion? |
|
Definition
| Advertising,display,public relations. |
|
|
Term
| What are "Mom and Pop stores?" |
|
Definition
| Small,often family owned,stores. |
|
|
Term
| What are general merchandisers? |
|
Definition
| Stores that sell all types of goods in multiple price ranges.Department and discount stores are general merchandisers. |
|
|
Term
| What are specialized merchandisers? |
|
Definition
| Stores that offer limited lines of related products to a defined customer. |
|
|
Term
| What is a flagship store? |
|
Definition
| The parent or main store that often houses the compoany offices. |
|
|
Term
|
Definition
| An individual unit of a company with many store locations. |
|
|
Term
|
Definition
| A company with 12 or more stores. |
|
|
Term
| What is the home office or central office? |
|
Definition
| The location of a retail companies executives-CEO, buyers,finance,human resources etc. |
|
|
Term
|
Definition
| The large stores in a mall that serve to pull customers into the mall. (Macys,Penneys,Sears etc.) |
|
|
Term
| What is a discount store? |
|
Definition
| Stores with minimal services and low prices.Target,KMart,Walmart. |
|
|
Term
| What is an off price retailer? |
|
Definition
| Stores that sell brand names at lower prices buy purchasing products that the vendors need to clear out.TJ Maxx,Marshalls |
|
|
Term
| What is a factory outlet? |
|
Definition
| Stores owned by a brand,designer or manufacturer to sell off product they need to clear. |
|
|
Term
| What is a wholesale club? |
|
Definition
| Stores that charge a membership fee and sell basic products in bulk packaging.Costco,Sam's Club |
|
|
Term
| What are specialty stores? |
|
Definition
| Stores offering a specific type of product. Victoria's Secret, Forever 21. |
|
|
Term
| What are category killers? |
|
Definition
| Large discount specialty stores that destroy competition in their specialty area.Home Depot,Best Buy. |
|
|
Term
| What are boutique stores? |
|
Definition
| Small,unique stores that sell distinctive merchandise. |
|
|
Term
| What is non-store retailing? |
|
Definition
| All retail outlets that do not involve a physical store location- cataloge,online,tv. |
|
|
Term
| How do mail order retailers sell products to teh consumer? |
|
Definition
|
|
Term
| What is direct mail retailing? |
|
Definition
|
|
Term
| Name one television retailer. |
|
Definition
|
|
Term
| What are two advantages to the consumer of on line retailing? |
|
Definition
| Products can be purchased any time of the day.The customer does not have to leave home. |
|
|
Term
| What types of retail format is located in teh hallways of malls? |
|
Definition
|
|
Term
| What is a leased department? |
|
Definition
| A department within a store that is actually run by another company leasing (renting) teh space.Commonly done in shoes and fine jewelry. |
|
|
Term
| What is the name of the largest retail trade association? |
|
Definition
| National Retail Foundation (NRF) |
|
|
Term
| What is retail positioning? |
|
Definition
| A companies postition amoung other retailers in regards to products and prices. |
|
|
Term
| What are the four elements of the marketing mix (the 4 P's)? |
|
Definition
| Product,price place and promotion. |
|
|
Term
| What is the strategy of retail positioning? (3 steps) |
|
Definition
| Define target market and understand buying motives. Create a specific image to differentiate from competitors. Blend correct marketing mix (4 P's) |
|
|
Term
| What is purchasing behavior? |
|
Definition
| The way customers act in the market. |
|
|
Term
|
Definition
| The reasons people buy what they buy. |
|
|
Term
| What are rational buying motives? |
|
Definition
| Practical concerns such as quality,price,how badly an item is needed. |
|
|
Term
| What are emotional buying motives? |
|
Definition
| Buying based on feelings about the product-fashion,color,appeal. |
|
|
Term
| What are product buying motives? |
|
Definition
| Buying based on the image of the product. |
|
|
Term
| What are patronage buying motives? |
|
Definition
| Favoring purchasing from a particular store. |
|
|
Term
| What are the four types of retail competition? |
|
Definition
| Direct, indirect,vertical and lifestyle. |
|
|
Term
| What is direct competition? |
|
Definition
| Two retailers with the same format.Forever 21 and H&M |
|
|
Term
| What is indirect competition? |
|
Definition
| Competition between retailers with different formats selling teh same product.Target and Best Buy are indirect competitors in selling electronics. |
|
|
Term
| What is vertical competition? |
|
Definition
| Businesses at different levels of teh supply chain.Specifically factory outlet stores that compete with the retail stores that the factory sells products to. |
|
|
Term
| What is lifestyle competition? |
|
Definition
| Competition for the consumers time and money by other activities. Movies,DVD's,sports etc. |
|
|
Term
| What is meant by a store's image? |
|
Definition
| The way it is seen by the public in terms of it's identity. |
|
|
Term
| How is a store's image formed? |
|
Definition
| By it's merchandise, physical appearance,promotions,employees. |
|
|
Term
|
Definition
| A store's selection of goods and services. |
|
|
Term
| What is the merchandise assortment? |
|
Definition
| The range of products a store carries. |
|
|
Term
| What is assortment breadth? |
|
Definition
| The number of styles a store carries. A broad assortment has alot of styles.A narrow assortment has few styles. |
|
|
Term
|
Definition
| The quantity of an item available. A deep assortment has alot of the same item-many sizes and colors.A shallow assortment has a small amount of each style. |
|
|
Term
| What store is more likely to carry a narrow and deep assortment-Ralph Lauren or Target? |
|
Definition
|
|
Term
| What are some services stores might provide to customers? |
|
Definition
| Parking,gift wrapping,alterations,credit,personal shopper. |
|
|
Term
| What type of store would offer more services,a discount store or a department store? |
|
Definition
|
|
Term
|
Definition
| Specific prices that a store utilizes,for instance pants at 20,30,and 40.Or pants at 9.99,14.99 and 19.99. or pants at 60,80 and 100. |
|
|
Term
| What is prestige pricing? |
|
Definition
| Setting high prices to attract customers who want staus or high quality. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Selling prices below the manufacturers suggested price. |
|
|
Term
|
Definition
| Stores lowering prices to compete with eachother.Sometimes they will loose money on teh product in order to hurt the competition. |
|
|
Term
| What is every day low pricing? |
|
Definition
| Products are priced at a low price every day instead of being on sale some times and other times at regular price. |
|
|
Term
|
Definition
| The assortment of stores in a particular location. |
|
|
Term
| What is intensive market coverage? |
|
Definition
| Having many stores in a particular area. |
|
|
Term
| What is selective market coverage? |
|
Definition
| Locating stores in only a few places within an area. |
|
|
Term
| What is exclusive market coverage? |
|
Definition
| Having stores in very few,choice spots. |
|
|
Term
| What physical part of the store cretaes the first impression? |
|
Definition
|
|
Term
| What are the two parts of the store interior? |
|
Definition
| Selling areas and sales support areas. |
|
|
Term
|
Definition
| Products that are not made from textiles-furniture,electronics |
|
|
Term
|
Definition
| Clothing and other items made from textiles. |
|
|
Term
| What is the goal of a buyer? |
|
Definition
| To make a profit for teh company. |
|
|
Term
| What internal information does a buyer use to decide future purchases? |
|
Definition
|
|
Term
| What external information does a buyer use to determine purchases? |
|
Definition
| Vendor and trade information. |
|
|
Term
| What is the formula for stock turnover based on six months of sales? |
|
Definition
| add the 7 months of inventory and divide by 7.This is average stock,Add up the six month sales. Formula is SALES/AVERAGE STOCK. |
|
|
Term
| What are the months in the spring season six month buying plan? |
|
Definition
| Feb,March,April,May,June and July |
|
|
Term
|
Definition
| The amount of money the buyer can spend. |
|
|
Term
| If you have a sales decrease,will your open to buy increase or decrease? |
|
Definition
|
|
Term
| What is a basic stock plan? |
|
Definition
| A plan for predictable items that should always be in stock |
|
|
Term
| What are close out goods? |
|
Definition
| Goods the manufacturer needs to get rid of and therefore reduces the price. |
|
|
Term
| What is the difference between a manufacturer and a wholesaler? |
|
Definition
| A manufacturer makes products. A wholesaler buys products from a manufacturer and then sells them to a buyer. A manufacturer may also sell goods directly to buyers. |
|
|
Term
| What attributes should be considered before choosing a vendor? |
|
Definition
| Their products,prices,credit terms,shipping capabilities, what other stores they sell |
|
|
Term
| What is floor ready merchandise? |
|
Definition
| Products are ticketed and on hangers if needed,ready to go to the sales floor. |
|
|
Term
| What is vendor turnaround time? |
|
Definition
| How long it takes a vendor to ship after a product is ordered. |
|
|
Term
|
Definition
| Preferred vendors that the store has had sucess with. |
|
|
Term
| What are the advatages of brand name vendors? |
|
Definition
| Brand recognition,vendor paid advertising. |
|
|
Term
| What are the disadvantages of brand name merchandise? |
|
Definition
| Identifable product restricts pricing options,requirements to stock certain amounts. |
|
|
Term
| What are teh advatages of private label merchandise? |
|
Definition
| Exclusive styles,lower prices. |
|
|
Term
| What is off shore sourcing? |
|
Definition
| Goods bought from over seas suppliers. |
|
|
Term
| What are some disadvantages of buying off shore? |
|
Definition
| Must be ordered far in advance. shipping problems and customs delays. |
|
|
Term
| What are market centers?What are the two most important US market centers? |
|
Definition
| Geographic areas where vendors show and sell products. New York and Los Angeles |
|
|
Term
|
Definition
| Specific weeks during teh year where vendors show new lines. |
|
|
Term
| What do buyers gain from attending market weeks? |
|
Definition
| See trends and entire lines of products during a short time.Looking for new vendors.Meeting with vendors management and working out favorable terms,networking with other buyers. |
|
|
Term
|
Definition
| Periodic temporary shows,often featuring new or smaller vendors. |
|
|
Term
|
Definition
| Buildings around the country where vendors ahve showrooms.LA,Dallas,Atlanta,Miami |
|
|
Term
|
Definition
| They shop overseas for products the buyer wants.They are familiar with the foreign vendors and teh language |
|
|
Term
| What is a resident buying office? |
|
Definition
| A service that employs buyers to scout teh market and report to member store buyers. |
|
|
Term
| What is a PO? What is leaving paper? |
|
Definition
| Purchase order- the written document that is used to buy goods.Leaving paper means to give the vendor an order during your visit or during market week. |
|
|
Term
| What is teh completion date of an order? |
|
Definition
| The date the products must be delivered by. |
|
|
Term
| What is a reorder?What is a backorder? |
|
Definition
| A reorder is an additional order for goods that are selling well. A backorder means the vendor cannot ship teh product now,but may be able to ship later. |
|
|
Term
|
Definition
| An increased amount of time to pay. |
|
|
Term
|
Definition
Net-there is no additional discount.
30- you have 30 days to pay |
|
|
Term
|
Definition
| You have a discount of 8% if you pay within 10 days of the End Of the Month you recieved the goods. |
|
|
Term
|
Definition
| The terms of teh sale-discounts,time to pay,delivery date,shipping method, transfer of title |
|
|
