Introduction to Marketing Chapter 11 – Flashcards
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What are the four characteristics used to classify retailers?
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The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized
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What is omni-channel retailing?
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Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
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Which of the following statements about retailer marketing decisions is correct?
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Retailers face three major marketing decisions: segmentation and targeting, store differentiation and positioning, and the retail marketing mix.
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Retailers must decide on which three major product variables?
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Product assortment, services mix, and store atmosphere
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Which of the following statements about major retail trends is true?
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Online buying is growing at a much brisker pace than retail buying as a whole. Last year's U.S. online retail sales grew 117 percent over the previous year versus a 4 percent increase in overall retail sales.
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The trend of ________ has resulted in different types of retailers now selling the same products at the same prices to the same consumers.
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retail convergence
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The three major groups of wholesalers are ________.
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merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices
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Which of the following statements about wholesaling is true?
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Wholesalers must make decisions regarding their marketing mix.
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Specialty store
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A retail store that carries a narrow product line with a deep assortment within that line.
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Department store
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A retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers.
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Supermarket
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A large, low-cost, low-margin, high- volume, self-service store that carries a wide variety of grocery and household products.
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Superstore
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A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services.
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Category killer
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A giant specialty store that carries a very deep assortment of a particular line. Ex: Best Buy, Home Depot, Petco, and Bed Bath & Beyond
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Service retailer
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A retailer whose product line is actually a service; examples include hotels, airlines, banks, colleges, and many others.
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Convenience store
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A relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices.
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Retailing
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All the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
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product breadth
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variety of products that a store offers.
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product depth
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number of each item or particular styles that you carry of a particular product.
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Product assortment breadth relates to the
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number of distinct product categories a given retailer sells. Retailers can be classified by the length (i.e. the number of items within a category) and the breadth (i.e. the number of product categories) of their product assortments.
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Corporate chain
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Two or more outlets that are commonly owned and controlled. Corporate chains appear in all types of retailing but they are strongest in department stores, discount stores, food stores, drugstores, and restaurants. Ex: Macy's (department stores), Target (discount stores), Kroger (grocery stores), CVS (drugstores)
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Voluntary chain
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Wholesaler-sponsored group of independent retailers engaged in group buying and merchandising. Ex: Independent Grocers Alliance (IGA), Western Auto (auto supply), True Value (hardware)
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Franchise
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A contractual association between a manufacturer, wholesaler, or service organization (a franchisor) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.
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Retailer cooperative
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Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.
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Independent off-price retailer
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An off-price retailer that is independently owned and operated or a division of a larger retail corporation
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Wholesaling
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All the activities involved in selling goods and services to those buying for resale or business use.
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experiential retailing
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Many successful retailers seek to create a unique store experience, carefully orchestrating virtually every aspect of the consumer store experience to suit the target market and move customers to buy. These companies employ experiential retailing techniques, manipulating atmospheric elements of the store to elevate the shopping experience.
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showrooming
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the practice of visiting a store or stores in order to examine a product before buying it online at a lower price.
