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Flashcards in Exam 1 Deck (33)
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1
Q

a set of business activities that adds value to the products and services sold to consumers for their personal or family use.

A

Retailing

2
Q

is a business that sells products and/or services to consumers for personal or family use.
EX: JCPenny, Amazon, jiffy lube

A

retailer

3
Q
  • provide assortment (buy other products at the same time)
  • break bulk (buy it in quantities customers want)
  • hold inventory (buy it at a convenient place when you want it)
  • offer services( see it before you buy it; get assistance)
A

How retailers add value

4
Q

firm performs more than one set of activities in the channel

Ex: retailer invests in wholesaling or manufacturing

A

vertical integration

5
Q

retailer performs some distribution and manufacturing activities
EX: JCP sells arizona jeans (private label)

A

backwards integration

6
Q

manufacturers undertake retailing activities

Ex: Ralph Lauren operates its own stores

A

forward integration

7
Q
  • Social and political objectives
  • geography
  • Market size
A

reasons for differences in distribution systems

8
Q

The voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations, in addition to the concerns of its stakeholders

A

corporate social responsibility

9
Q
  • Made Infrequently
  • Long-term
  • Require significant investment
  • Not easily reversed
A

strategic decisions

10
Q

Dillard’s vs.. JCPenney)

A

intratype

11
Q

dillards vs wal-mart

A

intertype

12
Q

the target market
the product and service mix
a long-term competitive advantage

A

a retail strategy should…

13
Q

wide vs. narrow

- The number of merchandise categories

A

Variety (breadth of merchandise

14
Q

deep vs. shallow

-the number of items in a category (SKUs

A

Assortment (depth of merchandise

15
Q

Perishables (meat, dairy, produce, and baked goods) account for 30% of supermarket sales

A

Conventional supermarkets

16
Q

2000 SKU
Offer one or two brands and sizes
Designed to maximize efficiency and reduce costs
Offer merchandise at 40-60% lower prices than conventional supermarkets

A

Limited assortment supermarkets (extreme value food retailers)

17
Q

Conventional

Supermarket Survival Pack

A

Emphasize Fresh Perishables
Target health conscious and ethnic consumers
Offer more private label brands
Provide a better in-store experience

18
Q

-Broad variety
-Deep assortment
-Customer service
-Merchandise displayed into
distinct departments
-Soft goods
-Hard goods

A

Department Store Retailing

19
Q

Full-Line Discount Stores

A

Broad variety, limited service, and low prices

Walmart, Target, Kmart

20
Q
Little variety, great assortment
Destination stores
Category killers
Low price and service
Intense competition
Wholesaling to business customers and retailing to consumers
Incredible growth
A

Category Specialists (bass pro)

21
Q
Little number of complementary merchandise 
Specific market segment
Category killers
Most profitable and fastest growing 
Thrift stores and consignment shops
A

specialty stores (Apple)

22
Q

Dollar Stores
Broad variety with little assortment of household goods, health and beauty care products, and groceries
Focuses on lower income consumers
Low cost location
Limited services
More private-label options and impulse buys
Adding food services

A

Extreme Value Retailing

23
Q

Inconsistent assortment of brand-name merchandise
Close-out retailers
Brand name and designer-label merchandise at 20-60% lower than MSRP
Offer closeouts and irregulars
TJX Companies (which operates T.J.Maxx, Marshalls, Winners, HomeGoods, TKMaxx, AJWright, and HomeSense),
http://www.Overstock.com and http://www.Bluefly.com

A

Off-Price Retailers

24
Q

30 – 40% of US retail sales
Franchisee pays fixed fee plus % of sales
Franchisee implements program
Why is this ownership format efficient?

A

Franchising

25
Q

Overcome inherent challenges in the existing format
More assortment
Low cost, consistent execution
Current and more information for the consumer and about the consumer

A

benefits of multi channel retailing

26
Q

the market segment(s) toward which the retailer plans to focus its resources and retail mix

A

target market

27
Q

an advantage over the competition that is
not easily duplicated and can be maintained
over a long time.

A

Sustainable Competitive

Advantage

28
Q

A group of consumers with similar needs and a group of retailers that satisfy those needs using a similar retail channel and format.

A

retail market

29
Q

Introduces a new retail format toward a market segment that is not currently served by the retailer

A

diversification

30
Q

Globally sustainable competitive advantage
Low cost, efficient operations - Wal-Mart, Carrefour
Strong private label brands: Starbucks, McDonalds
Fashion Reputation - The Gap, Zara, H&M
Category dominance – Best Buy, IKEA
Adaptability
Global Culture
Financial Resources

A

Key to Success in Global Retailing

31
Q

return on assets (ROA) is the primary focus. ROA is the profit generated by the assets possessed by the firm.

A

financial

32
Q

– helping to improve the world around us. Societal objectives are related to broader issues that make the world a better place to live.

A

societal

33
Q

is a method for summarizing the factors that affect a firm’s financial performance, as measured by return on assets.

A

Strategic Profit Model-