midterm

Question 1

retail

Answer 1

the set of business activities that adds value to products and services sold to consumers for their personal or family use

Question 2

breaking bulk

Answer 2

• reduce production costs
• important to both manufacturers and consumers
• allows manufacturers to efficiently make and ship merchandise in larger quantities
• consumers purchase merchandise in smaller more useful quantities

Question 3

holding inventory

Answer 3

products will be available when consumers want them

Question 4

vertical integration

Answer 4

a firm performs more than one set of activities in the channel

Question 5

backward integration

Answer 5

arises when a retailer performs some wholesaling and manufacturing activities

Question 6

forward integration

Answer 6

occurs when a manufacturer undertakes retailing and wholesaling activities

Question 7

corporate social responsibility (CRS)

Answer 7

an organization voluntarily engaging in business practices that meet or exceed the ethical and legal expectations of society, customers, employees

Question 8

intratype competition

Answer 8

competition between the same type of retailers

Question 9

scrambled merchandise

Answer 9

when retailers offer merchandise not typically associated with their type of store

Question 10

retail strategy

Answer 10

identifies
1- target market
2- merch and services offered to satisfy customer needs
3- how to achieve long term advantages over its competition

Question 11

NAICS

Answer 11

collect data on business activity in each country

Question 12

variety (breadth of merchandise)

Answer 12

number of merchandise categories a retailer offers

Question 13

assortment (depth of merchandise)

Answer 13

number of different items offered in a merchandise category

Question 14

conventional supermarket

Answer 14

a large, self-service retail food store offering groceries, meat, and produce, as well as some nonfood items

Question 15

limited assortment supermarkets or extreme value food retailers

Answer 15

only stock one or two of brands and sizes

Question 16

supercenters

Answer 16

large stores that combine a supermarket with a full-line discount store

Question 17

warehouse clubs

Answer 17

retailers that offer a limited and irregular assortment of food and general merchandise with little service at low prices (costco)

Question 18

convenience stores

Answer 18

provide a limited variety and assortment of merchandise at a convenient location

Question 19

department stores

Answer 19

retailers that carry a broad variety and deep assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise (macys, nordstroms)

Question 20

specialty stores

Answer 20

concentrate on a limited number of complementary merchandise categories and provide a high level of service

Question 21

extreme value retailers (dollar stores)

Answer 21

small discount stores that offer a broad variety but shallow assortment of household goods, health and beauty, groceries

Question 22

off price retailers

Answer 22

offer an inconsistent assortment of brand-name merchandise at a significant discount

Question 23

internet retailing

Answer 23

• the fastest growing channel

- involves retailers interacting with consumers via the internet

Question 24

electronic channel

Answer 24

accessing internet through computer

Question 25

mobile retailing

Answer 25

accessing internet through smartphone

Question 26

catalog channel

Answer 26

- nonstore retailing through catalog mailed to consumers - about half consumers shop through catalogs - starting to be thought of as a waste - safety and convenience - easier to browse than websites

Question 27

direct selling

Answer 27

- like mary k - face to face in home or work - costly - party plan system - multilevel system--illegal pyramid schemes

Question 28

automated retailing (vending machines)

Answer 28

- merchandise or services are stored in a machine and dispensed to customers when they deposit cash or credit card - at convenient, high-traffic locations

Question 29

store channel benefits

Answer 29

- touching and feeling products - personal service - risk reduction - immediate gratification - entertainment and social experience - browsing - cash payment

Question 30

benefits of internet channel

Answer 30

- offer greater selection of products - more info - more personalized info on products and services - improve shopping experience across all channels - deeper and broader selection

Question 31

buying process

Answer 31

1- recognize needs 2- seek info on how to satisfy need 3- then evaluate 4- postpurchase evaluation

Question 32

hedonic needs

Answer 32

shopping for pleasure

Question 33

utilitarian needs

Answer 33

shopping for work

Question 34

conversion rate

Answer 34

the percentage of customers who enter a store or access a website and then buy a product from that same store or website

Question 35

habitual decision making

Answer 35

purchase decision involving little or no conscious effort

Question 36

social factors influencing the buying process

Answer 36

- economy - family - reference groups - culture

Question 37

retail strategy

Answer 37

1- identifying the retailers target market 2- the resources the retailer plans to use to satisfy target markets needs 3- competitive advantage

Question 38

CRM

Answer 38

activities that focus on identifying and building loyalty with a retailer's most valued customers

Question 39

freestanding sites

Answer 39

retail locations for an individual, isolated store unconnected to other stores

Question 40

outparcels

Answer 40

freestanding stores that are not connected to other stores - located on the premises of a shopping center - in a parking area

Question 41

central business district

Answer 41

the traditional downtown financial and business area in a city or town - draws many people and employees during business hours - shopping flow on evening and weekends is slow

Question 42

main street

Answer 42

refers to the traditional downtown shopping area in smaller towns and secondary shopping areas in large cities and their suburbs

Question 43

power centers

Answer 43

target, costco, lowes | -collection of big box retail stores

Question 44

specialty shopping

Answer 44

know what they want and will not accept a substitute

Question 45

convenience shopping

Answer 45

minimizing effort to get product or service they want - insensitive to price - indifferent about brands

Question 46

comparison shopping

Answer 46

- general idea about product they want | - no well developed preference

Question 47

platinum segment

Answer 47

composed of the customer with the top percent of CLVs - most profitable and loyal - not overly concerned about prices - more value on service than price - buy a lot of merchandise

Question 48

gold segment

Answer 48

buy a significant amount but not as loyal

Question 49

iron segment

Answer 49

- purchase modest amount | - loyalty not substantial enough for special treatment

Question 50

lead segment

Answer 50

demand a lot of attention but do not buy much from the retailer

Question 51

knowledge gap

Answer 51

reflects the difference between customers expectations and retailers perception of those expectations -can close gap by developing a better understanding of customer expectations

Question 52

standards gap

Answer 52

difference between the retailers knowledge of customers perception and expectations and the service standards it sets -close gap by appropriate service standards and measuring service performance

Question 53

delivery gap

Answer 53

difference between the retailers service standards and the actual service provided -can close gap by exceeding or meeting service standards

Question 54

communication gap

Answer 54

difference between the actual service provided and the service that was promised -can close gap by more realistic service