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Principles of Retailing Ch. 1&2

Terms in this set (31)

Retailing
encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use
channel of distribution
All of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer
Sorting Process
retailers collect an assortment from various sources, buy in large quantity, and sell in small amounts
omnichannel retailing
retailer sells to consumers through multiple retail formats
exclusive distribution
suppliers make agreements with one or a few retailers that designate the latter as the only ones in specified geographic areas to carry certain brands or products
intensive distribution
suppliers sell through as many retailers as possible
selective distribution
suppliers sell through a moderate number of retailers
Retail Strategy
Overall plan guiding a retail firm. It influences the firm's business activities and its response to market forces, such as competition and the economy.
retailing concept
customer orientation
coordinated effort
value driven
goal orientation
total retail experience
includes all the elements in a retail offering that encourage or inhibit consumers during their contact with a retailer
customer service
refers to the identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells.
Relationship Retailing
Seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter
value
embodied by a series of activities and processes
Value Chain
represents the total bundle of benefits offered to consumers through a channel of distribution
Core Customers
loyal, satisfied consumers who get high value from their retailer and generate high profits for the retailer.
Expected Customer Service
the service level that customers want to receive from any retailer such as basic employee courtesy
Augmented Customer Service
includes the activities that enhance the shopping experience and give retailers a competitive advantage
Employee Empowerment
Workers have the discretion to do what they believe is necessary - within reason - to satisfy the customer, even if this means bending the rules
revolving credit account
Allows a customer to charge items and be billed monthly on the basis of the outstanding cumulative balance.
Option Credit Account
Form of revolving account that allows partial payments. No interest is assessed if a person pays a bill in full when it is due.
Open Credit Account
a consumer must pay the bill in full when it is due
customer satisfaction
Occurs when the value and customer service provided through a retailing experience meet or exceed consumer expectations
Consumer Loyalty (Frequent Shopper) Programs
reward a retailer's best customers, those with whom it wants long-lasting relationships
value delivery system
comprises all the parties that develop, produce, deliver, and sell and service particular goods and services
good retailing
focuses on the sale of tangible (physical) products
service retailing
involves transactions in which consumers do not purchase or acquire ownership of tangible products
Rented-goods service
consumers lease and use for specified periods of time
Owned-goods service
goods owns by consumers are repaired, improved, or maintained
Non-goods services
intangible personal services are offered to consumers who then experience the services rather than possess them
electronic banking
Includes both automatic teller machines (ATMs) and the instant processing of retail purchases.
Americans with Disabilities Act
mandates that persons with disabilities be given appropriate access to retailing facilities
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