Fashion Retail Industry Exam 1 Kent State

Retailing

set of business activities that adds value to the products and services sold to consumers for

their personal or family use.

Retailers provide important functions that increase the value of the products & services they

sell to consumers. What are value-creating activities performed by a retailer?

Providing an assortment of products.

Breaking bulk.

Holding inventory.

Providing an assortment of services

How do retailers function as wholesalers

Retailers are the middlemen who buy goods from wholesalers or producers and sell them to consumers.

Vertical Integration

means that a firm performs more than one set of activities in the channel, as occurs

when a retailer engages in wholesaling activities by operating its own distribution centers to

supply its stores.

Corporate Social Responsibility

involves an organization voluntarily engaging in business practices that meet or

exceed the ethical and legal expectations of its stakeholders.

intratype competition

The competition between the same type of retailers

Karen's is a popular casual clothing store in Boston. The store recently started selling candles,

essential oils, and other home decorative products. Karen's is practicing

Scrambled Merchandising

scrambled merchandising

an offering of merchandise not typically associated with the store type, such as clothing in a drugstore

Retail Strategy

a statement the indicates (1) the target market toward which a retailer plans to commit its resources, (2) the nature of the retail offering that the retailer plans to use to satisfy the needs of the target market, and (3) the bases upon which the retailer will attempt to build a sustainable competitive advantage over competitors

Retail Mix

A set of decisions retailers make to satisfy customer needs and influence their purchase

decisions

assortment

the number of SKUs within a merchandise category. also called depth of merchandise

variety

breadth of merchandise.

Difference between the breadth and depth of merchandise

The number of products in a product line refer to its product line depth, while the number of separate product lines owned by a company is the product line width (or breadth)

warehouse clubs

typically have low inventory holding costs by carrying a limited assortment

of fast-selling items.

department stores

They often resemble a collection of specialty shops.

What do Southwest Airlines, Panera Bread, and Jenny Craig have in common?

They are all examples of service retailers

Due to the __________ of services, "service retailers" like Universal Studios Theme Parks, United

Airlines, and Applebee's restaurants sometimes find it difficult to match supply and demand.

perishability

multichannel retailing

offers more than one channel to sell and deliver merchandise and services to consumers.

channel migration

is the concept of customers starting out on one channel, but - over their lifetime - migrating to another channel (completely or partially).

Showrooming

the practice of examining merchandise in a traditional brick-and-mortar retail store or other offline setting, and then buying it online, sometimes at a lower price

What is the difference between Hedonic and Utilitarian?

Hedonic goods are consumed for luxury purposes, which are desirable objects that allow the consumer to feel pleasure, fun, and enjoyment from buying the product. This is the difference from Utilitarian goods, which are purchased for their practical uses and are based on the consumer's needs.

"Multiattribute Attitude Model

predict how a customer will evaluate a product, retailer, or channel based on its attributes

and how important these attributes are to the customer.

Extended Problem Solving

when they have little knowledge about the product or service.

Limited Problem Solving

associated with impulse buying

Brand Loyalty

defined as positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand, regardless of a competitor's actions or changes in the environment.

habitual decision making

consumer decision making or problem solving requiring only minimal search for, and evaluation of, alternatives before purchasing