Chapter 16

Question 1

Consumer Utlities

Answer 1

The utilities provided by retailers create value for consumers

Question 2

Form of Ownership

Answer 2

Distinguishes retail outlets based on wheater independent retailers, corporate chains, or contractual systems own the outlet

Question 3

Level of Service

Answer 3

Describes the degree of service provided to the customer from three types of retailers: self-limited, and full-service

Question 4

Merchandise Line

Answer 4

Describes how many different types of products a store carries and in what assortment

Question 5

Independent Retailer

Answer 5

Most common forms of retail ownership - the owner is the boss

Question 6

Corporate Chain

Answer 6

Involved multiple outlets under common ownership

Question 7

Franchising

Answer 7

An individual or firm contracts with a parent company to set up a business or retail outlet

Question 8

Self Service

Answer 8

Requires that customers perform many functions during the purchase process

Question 9

Limited Service

Answer 9

Provide some service, such as credit/merchandise return, but not others, such as clothing alterations

Question 10

Full Service

Answer 10

Provide many services to customers

Question 11

Depth of Product Line

Answer 11

The store carries a large assortment of each product item

Question 12

Supercenter

Answer 12

Combines a typical merchandise store with a full sized grocery store

Question 13

Automatic Vending

Answer 13

Nonstore retailing - vending machines or v-commerce

Question 14

Direct Mail and Catalogs

Answer 14

The store that comes to the door

Question 15

Television Home Shopping

Answer 15

When shopping channels display products and orders are placed over the phone or the internet

Question 16

Online Retailing

Answer 16

Allows consumers to search for, evaluate, and order products through the internet

Question 17

Telemarketing

Answer 17

Using the telephone to interact with and sell directly to consumers

Question 18

Direct Selling

Answer 18

Door-to-door, direct sales of products and services to consumers through personal interactions and demonstrations in their home/office

Question 19

Retail Positioning matrix

Answer 19

A matrix that positions retail outlet on two dimensions: breadth or product line and value-added, such as location, product reliability, or prestige

Question 20

Retailing Mix

Answer 20

The activities related to managing the store and the merchandise in the store, which include retail pricing, store location, retail communication, and merchandise

Question 21

Markup

Answer 21

Refers to how much should be added to the cost the retailer paid for a product to reach the final selling price

Question 22

Markdown

Answer 22

Occurs when the product does not sell at the original price and an adjustment is necessary

Question 23

Everyday Low Pricing (ELP)

Answer 23

Consistently low prices and eliminates most markdowns

Question 24

Off Price Retailing

Answer 24

Selling brand-name merchandise at lower than regular prices

Question 25

Retail Image

Answer 25

The way in which the store is defined in the shopper's mind

Question 26

Shopper Marketing

Answer 26

The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store

Question 27

Category Management

Answer 27

An approach to managing the assortment of merchandise in which the manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category

Question 28

Retail Life Cycle

Answer 28

The process of growth and decline that retail outlets, like products, experience, consists of the early growth, accelerated development, maturity, and decline stages