Chapter 11 Flashcards
(30 cards)
Define retailing
All activities involved in selling, renting, and providing goods and services to ultimate consumers for personal, family, or household use.
Define form of ownership
Distinguishes retail outlets on the basis of whether individuals, corporate chains (under common ownership), or contractual systems (like franchises) own the outlet.
Define retailing mix
The goods and services, pricing, physical distribution, and communications tactics chosen by a store.
- products and services mix
- retail pricing mix
- physical location mix
- communications mix
Define level of service
The degree of service provided to the customer by self-, limited-, and full-service retailers.
define the merchandise mix
How many different types of products a store carries and in what assortment. - distinction between breadth and depth of a product line
Define depth of a product line
The assortment of products within each product line.
Define breadth of product line
The variety of different items a store carries.
Limited line vs single line stores (specialty outlets)
- limited line = stores that carry a large depth of a related line of items (like large depth of multiple items)
- single line stores (stores that carry a lot of depth in one primary line of merchandise)
–> specialty outlets focus on one type of product like electronics, office supplies etc.
category killers
specialty outlets that focus on one type of product and often dominate the market
general merchandise stores
stores that carry a variety of product lines but with limited depth
Define scrambled merchandising
Offering several unrelated product lines in a single retail store. –> leads to competition between very dissimilar types of retail outlets, (intertype competition)
What is a planogram
a visual diagram or drawing of fixtures and products that illustrates how and where retail products should be placed on a store shelf and other info.
- fastest moving high margin products get the most space on the shelf
define shrinkage
Breakage and theft of merchandise by customers and employees.
define off price retailing
Selling brand-name merchandise at lower than regular prices. ex. winners
define the central business district
The oldest retail setting, the community’s downtown area.
Define regional shopping centers
Consist of 50 to 150 stores that typically attract customers who live within a 5- to 15-km range; often containing two or three anchor stores. ex.malls
define community shopping centre
Retail location that typically has one primary store and 20 to 40 smaller outlets, serving a population of consumers within a 2- to 5-km drive.
define strip location
A cluster of stores serving people who live within a 5- to 10-minute drive.
Define power centre
Large shopping strip with multiple anchor stores, a convenient location, and a supermarket. (Are unenclosed shopping centers)
define multichannel retailers
Use a combination of traditional store formats and non-store formats such as catalogues and online retailing.
Define merchant wholesalers
Independently owned firms that take title to the merchandise they handle. (they buy the merchandise that they handle)
what are rack jobbers (type of limited service wholesalers)
furnish racks or shelves that display merchandise and perform all channel functions, they sell on consignment so the retain ownership of the products displayed and only charge for what merchandise gets sold.
what are cash and carry wholesalers (type of limited service wholesalers)
they take title to merchandise but sell only to buyers who call on them, pay cash, and furnish their own transportation for merchandise
- electric supplies, office supplies, hardware, groceries
what are drop shippers (type of limited service wholesalers)
wholesalers that own the merchandise they sell but do not physically handle, stock or deliver it. They solicit orders from retailers and have the merchandise directly shipped from a producer to a buyer
- bulky products like coal, lumber, chemicals
