Exam 3 (ch. 11 & 12) Flashcards
(52 cards)
All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use
Retailing
Business whose sales come primarily from retailing
Retailer
Retailers can be classified by what 4 things:
- amount of service
- product lines
- relative prices
- organizational approach
What are some characteristics of self-service retailers
- customers are willing to self-serve to save money
- discount stores
- digital retailers
What are some characteristics of limited-service retailers
- most department stores
- digital retailer
What are some characteristics of full-service retailers
- salesperson assist customers in every aspect of shopping experience
- high-end department stores
- specialty goods
What kind of product lines are in specialty stores
Narrow product lines with deep assortments
What kind of product lines are in department stores
Some variety of product lines ; each line is operated as a separate department
What kind of product lines are in supermarkets
Large, low-cost, low-margin, high-volume, self-service operations
What kind of product lines are in convenience stores
Limited line of high-turnover convenience products at slightly higher prices
What kind of product lines are in super stores
Wide variety and limited assortment
What kind of product lines are in category killers
Giant specialty stores
Luxury stores have…
…high margins
Discount stores have…
…low margins that are offset by high volume
Off-price retailers are…
…stores selling products at lower price than the full price stores (ex. TJ Maxx; Marshall’s
What organizational approach does corporate chain stores use
Multiple outlets that are commonly owned or controlled
What organizational approach does voluntary chains use
Wholesaler-sponsored groups of independent retailers
What organizational approach does retailer cooperatives use
Groups of independent retailers who buy in bulk
What organizational approach does franchise organizations use
A contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the franchise system
What are 5 retailing trends
- Growth nonstore retailing
- Global expansion of major retailers
- New retail formats introduced
- Growing importance of retail technology
- Green retailing
All activities involved in selling goods and services to those buying for resale or business use
Wholesaling
A firm engaged primarily in wholesaling activity. Intermediary which purchases products in large quantities and store them until they can be resold. Generally, sell the products they bought to other intermediaries
Wholesaler
What are 9 functions performed by wholesalers
- selling and promoting
- warehousing
- risk bearing
- buying and assortment building
- transportation
- market information
- bulk breaking
- financing
- management services and advice
What are three types of wholesalers
- Merchant wholesalers
- Brokers and agents
- Manufacturers and retailers branches and offices
