Ch 14:Retail

Retailing

All activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.

Independent Retailer

Owned by a person or group and is not part of a larger network.

Chain Store

A group of retailers owned and operated by a single organization.

Franchise

A retail business granted a license to operate and sell a product under a brand name of a larger organization.

Franchisor

The entity that originates the trade name, product, and methods of operation in a franchise.

Franchisee

An operator who pays the franchisor for the right to use its name, product, and business methods.

Level of Service

The range from full service to self-service that retailers provide to customers.

Product Assortment

The variety and depth of products offered by retailers.

Price Positioning

Classification of stores based on pricing strategies such as full price or discount.

Gross Margin

The percentage of sales revenue remaining after the cost of goods sold is subtracted.

Department Stores

Retailers that carry a wide range of products and specialty goods, organized by departments.

Specialty Stores

Retailers that carry a deeper but narrower assortment of merchandise within a single category.

Supermarkets

Large, self-service retailers specializing in food and some nonfood items.

Drugstores

Retailers primarily providing pharmacy-related products and services.

Convenience Store

Miniature supermarkets offering a limited line of high-turnover convenience goods.

Discount Stores

Retailers that compete on the basis of low prices and high volume.

Supercenters

Retailers that combine full-line discount strategies with groceries and various services.

Nonstore Retailing

Retailing formats that allow customers to shop without visiting a physical store.

Automatic Vending

The use of machines to sell goods, such as drinks and snacks.

Self-Service Technologies (SST)

Automated solutions allowing customers to complete transactions without employee assistance.

Shop-at-Home Television Networks

Networks that showcase products and allow viewers to order by phone.

Online Retailing (E-tailing)

Shopping conducted over the Internet with items delivered directly to customers.

Telemarketing

A form of direct marketing that uses phone calls to sell directly to consumers.

Direct Mail Marketing

Marketing method using mail to deliver promotional material to targeted audiences.

Market Segmentation

The process of dividing a market into distinct groups of buyers.

Retailing Mix

A combination of the elements that make up a retail strategy, including the 6 Ps.

Presentation

The overall impression conveyed by a store's physical layout, decor, and surroundings.

Atmosphere

The ambiance of a retail store created by its design and presentation factors.

Personnel

Sales staff who create customer relationships and provide service during shopping.

Trading Up

A sales technique where customers are persuaded to buy a higher-priced item.

Suggestion Selling

A technique where sales personnel recommend additional products to customers.

Destination Store

A retail location that consumers intentionally plan to visit.

Customer Preferences

The evolving desires and needs of consumers that retailers must adapt to.

Visual Factors

Elements such as color and layout that influence shoppers' perceptions and behaviors.