Retailing and Wholesaling Chapter 13 Flashcards

These flashcards cover key vocabulary and concepts from Chapter 13 on Retailing and Wholesaling, including utilities, classification methods, nonstore formats, and the retailing mix.

Retailing

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

Time Utility

A consumer utility where products are available when needed, such as Dick’s Sporting Goods offering year-round inventory for seasonal sports at more than $640$ stores.

Place Utility

A consumer utility providing product access in convenient locations, such as Wells Fargo reaching customers through $8,700$ stores and a network of $13,000$ ATMs.

Form Utility

A consumer utility involving the production or alteration of a product, such as Ralph Lauren’s collection allowing customers to select between $15$ styles and $13$ colors to create custom shirts.

Possession Utility

A consumer utility that facilitates the transition of product ownership, exemplified by CarMax’s policies on financing, trade-ins, and no-haggle sales.

Independent Retailer

A form of ownership accounting for $3.8 ext{ million}$ stores in the United States.

Corporate Chain

Retail outlets that involve multiple stores under common ownership.

Contractual System

A form of ownership where independent stores work together to act as a chain, such as franchises.

Self-Service

A level of service where customers perform many functions, such as at a warehouse club or gas station.

Limited Service

A level of service where retailers provide some services, such as credit and merchandise return, but not all.

Full Service

A level of service where retailers provide full services to customers, typical of high-end department stores and specialty stores.

Depth of Product Line

The number of items within each product line, such as a specialty store carrying many types of running shoes.

Breadth of Product Line

The number of different product lines carried by a store, as seen in general merchandise stores.

Category Killer

Specialty outlets that dominate the market in a specific product category, such as Best Buy for electronics and Staples for office supplies.

Scrambled Merchandising

Offering several unrelated product lines in a single store.

V-commerce

A form of nonstore retailing using automatic vending machines to serve customers where stores cannot.

Online Retailing

Nonstore retailing offering $24$-hour access and comparison shopping, sometimes referred to as bricks and clicks.

Telemarketing

The use of the telephone to interact with and sell directly to consumers, used by $40 ext{ percent}$ of businesses.

Retail Positioning Matrix

A matrix that positions retail outlets on two dimensions: breadth of product line and value added.

Retailing Mix

Activities related to managing a store including retail pricing, store location, retail communication, and merchandise.

Everyday Low Pricing (EDLP)

A pricing strategy used by retailers like Walmart to maintain consistently low prices.

Off-price Retailing

A strategy involving warehouse clubs and outlet stores that offer unpredictable selections and extreme value.

Multichannel Retailers

Retailers that utilize and integrate a combination of traditional store formats and nonstore formats.

Shopper Marketing

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

Shopping Experience

A consumer’s perception of an encounter with a store’s physical environment, personnel, and policies.

Category Management

Managing a merchandise assortment by assigning a manager to select all products in a segment that consumers might view as substitutes.

Wheel of Retailing

A concept describing how new retail forms enter the market with low status and prices, then gradually add services and raise prices.

Retail Life Cycle

The process of growth and decline for retail outlets, consisting of early growth, accelerated development, maturity, and decline.

Merchant Wholesalers

Independently owned firms that take title to the merchandise they handle.

Manufacturer's Agents

Agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

Brokers

Independent firms or individuals whose principal function is to bring buyers and sellers together to make sales.