Retailing Exam 2

Term
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sole proprietorship
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Terms in this set (48)
sole proprietorship
A business owned and managed by a single individual
franchise
an agreement between two parties which gives a person or group of people the rights to market a product or service using the trademark of another business.
freestanding site
retail locations for an individual isolated store unconnected to other stores.
kiosk
small temporary selling space typically located in the walkways of enclosed shopping centers, airports, or building lobbies.
central business district
traditional downtown business area in a city or town.
gentrification
the restoration of run-down urban areas by the middle class
advantages of locating in a central business district
draws people during business hours
hub for public transportation
high levels of pedestrian traffic
disadvantages of locating in a central business district
security risks
limited parking
drive times discourage suburban shoppers
inner city locations
high density urban areas consisting of apartment building populated by primarily lower-income consumers.
shopping center
a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit
neighborhood centersmallest of the open-air shopping centers, consisting of retailers who serve the needs of local customers.power centershopping center that consist primarily of collections of big box retail stores, such as discount stores, off price stores, warehouse clubs and category specialistslifestyle centerAn open-air shopping site that typically includes upscale, well-known specialty stores.mallenclosed, climate controlled, lighted shopping centers with retail stores on one or both sides of the walkwayoutlet centersShopping centers that contain mostly manufacturers' and retailers' outlet storestrade areathe contiguous geographic area from which a retailer can expect to draw most of its customersunderstoreda condition in which an area has too few stores to satisfy the needs of the local customersoverstoreda condition in the community where the number of stores in relation to households is so large that to engage in retailing is usually unprofitable or marginally profitabledestination storesplaces where consumers will go even if it is inconvenienteconomies of scaleFactors that cause a producer's average cost per unit to fall as output risesconsiderations in selecting a specific sitetraffic flow accessibility parking visibility adjacent tenants location within a shopping centersocial classa ranking in society determined by members of that society—it is often based on such as income, education, occupation, and residential neighborhood.demographic segmentationDividing the market by its vital statistics, including age, income, and education levelGeneration Xincludes 44 to 50 million Americans born between 1965 and 1976. This generation marks the period of birth decline after the Baby Boom and is significantly smaller than previous and succeeding generations.cohort effectsThe effects of being born and raised in a particular time or situation where all other members of your group has similar experiences that make your group unique from other groupstarget marketA defined group most likely to buy a firm's product; that group at whom a firm aims its marketing effortsbenefit segmentationDividing the market into segments according to the different benefits that consumers seek from the productaggregated strategyappeals to all potential customers using the same basic need and the same basic marketing mix.multi-segment strategyThe market is viewed as two or more segments requiring different marketing mixes. One product/multiple productsniche strategyA competitive strategy that focuses on a select group of consumersmarketa group of individuals with a need to fill, money to spend, and the willingness to spend money.five step model of consumer buying behaviorneed recognition information search evaluation of alternatives purchase pot-purchaseneed recognitionThe beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.information searchOnce a problem is perceived, begin to search for information needed to make a purchase decisionevaluation of alternativesHow the consumer processes information to arrive at brand choices; consumers set criteria that the product must meet then evaluates all the alternatives that meet this criteriapurchaseto buypost-purchaseThe stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction.cognitive dissonanceConsumer discomfort with a purchase decisionmulti-attribute modela model to predict a customer's evaluation of a product, service, or retailer based on its performance on relevant attributes and the importance of those attributes to the customermarket segmentationDividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programsfamily life cycleA series of stages determined by a combination of age, marital status, and the presence or absence of childrenneeda person's basic selling requirements consistent with his or her present demographics and lifestyle.desiresdiscretionary shopping goals that have an impact on attitudes and behaviorrational buying motivesReasons consumers decide what products and services to purchase based on facts and logic.patronage buying motivesA reason customers will shop at one store instead of another, can be rational or emotional.physical problem recognitionrepresents a personal, physical response to a need (such as hunger)commercial need recognitionsigns, advertising, or other marketing messages initiate a needsocial need recognitionwhen a need is determined by exposure to peer pressure