Consumer Buying Process and Retail Strategies

A comprehensive set of flashcards covering key concepts related to consumer buying behavior and retail strategies.

Need recognition

The trigger that initiates the consumer buying process.

Hedonic value

Emotional, experiential, pleasure-based shopping value.

Utilitarian value

Task-oriented, efficient, functional shopping value.

Webrooming

Researching online and purchasing in-store.

Showrooming

Researching in-store and purchasing online.

Internal information search

Using memory and past experiences.

External information search

Using outside sources like reviews, ads, and word-of-mouth.

Extended problem solving

High involvement, high risk, extensive decision-making.

Limited problem solving

Moderate effort, some comparison, some prior experience.

Habitual decision making

Automatic, low-involvement repeat purchases.

Consideration set

The group of retailers a consumer seriously evaluates.

Cognitive dissonance

Post-purchase doubt or anxiety.

Reference groups

Groups that influence beliefs, feelings, and behaviors.

Economic conditions

Recessions increase value focus; growth increases hedonic spending.

Target market

The specific group of customers a retailer aims to reach.

Retail format

The type of retail operation.

Sustainable competitive advantage

A long-term advantage competitors cannot easily copy.

Customer loyalty

Deep commitment to a retailer beyond simple preference.

Private-label brand

Merchandise developed and sold exclusively by a retailer.

Customer Relationship Management (CRM)

Programs designed to build customer loyalty.

Market penetration

Growing within existing markets using current formats.

Market expansion

Using an existing retail format in a new market.

Retail format development

Creating a new retail format for the same target market.

Diversification

New retail format + new market.

SWOT analysis

Strengths, Weaknesses, Opportunities, Threats.

Mission statement

A retailer’s purpose, values, and strategic direction.

Unplanned locations

Retail locations not designated in advance.

Planned locations

Retail sites that are determined before establishment.

Freestanding site

A retail location not connected to other retailers.

Central business district (CBD)

Traditional downtown business area.

Strip shopping center

Attached row of open-air stores with parking in front.

Power center

Big-box anchors with few small stores.

Lifestyle center

Open-air, specialty retail combined with dining and ambiance.

Outlet center

Manufacturer and off-price retailer outlets.

Theme/festival center

Shopping center built around a unifying theme.

Omnicenter

Combination of mall, lifestyle center, and power center.

Cumulative attraction

Similar stores draw more customers when located together.

Trade area

Geographic area containing a store’s customers.

Primary trade area

The zone where most of a store’s customers are located.

Secondary trade area

An area where some of the store’s customers live.

Tertiary trade area

The zone that includes customers from adjacent secondary areas.

Zoning

Regulations controlling land use.

Outparcel

A building in a shopping center’s parking lot.

Metropolitan statistical area (MSA)

Urban area with 50,000 or more people.

Traffic flow

Number of cars or people passing a site.

Visibility

How easily customers can see the store.

Customer spotting

Identifying where customers live.

Geographic Information System (GIS)

System for mapping trade areas.

Analog approach

Comparing a potential site to a successful existing site.

Cannibalization

New stores reducing sales of existing stores.

Cotenancy clause

Requires certain tenants to remain in a center.

Percentage lease

Rent based on a percentage of sales.

Fixed-rate lease

Rent stays the same each period.

Distribution center (DC)

Facility for receiving, storing, and shipping merchandise.

Fulfillment center (FC)

Ships merchandise directly to customers.

Supply chain management

Managing merchandise flow from vendors to customers.

Stockout

When a customer wants an item that is unavailable.

Rain check

Promise to sell an out-of-stock item at sale price later.

Electronic Data Interchange (EDI)

Computer-to-computer document exchange.

Vendor-managed inventory (VMI)

Vendor maintains retailer’s inventory levels.

Radio Frequency Identification (RFID)

Real-time inventory tracking.

Cross-docking

Merchandise goes from inbound truck to outbound truck with little storage.

Just-in-time (JIT) inventory

Frequent, small shipments to reduce inventory levels.

Pull supply chain

Orders generated from store-level sales data.

Push supply chain

Merchandise allocated based on forecasts.

Reverse logistics

Handling returns and moving goods backward in the supply chain.