RETAIL GLOSSARY

Acquisition Anchor Audit Tape Bill of Lading Branch Store Button Ticket Buying Office hain Stores lassic on!enience "roducts ooperati!e #eli!ery Receipt #epart$ent Store #ifferentiation #irectory #iscount Store #ollar ontrol #ura%le Goods Electronic Shopping E$ergency Ite$s &ad &ashion &ashion ycle &I&O &lying Squad &or'ard Reser!e Stock &or'ard Stock &ull Background &ull(Line Good )ith I$portant Ser!ices The takeover of a retail operation by another company. A business, usually a department store, that is particularly important to a shopping center because it attracts a great deal of traffic. A record kept by the cash register of all the transactions entered on the register. Describes the extent to which customers are familiar with a product or company A contract between a freight company and a shipper regarding transportation, which includes the exact contents of the delivery. A smaller store operated by a department store that carries a limited range of merchandise. A pricing ticket with a hook at the top that can be attached to a button. A central office where buyers purchase merchandise for all stores in a department store chain. Two or more stores with similar characteristics, owned by the same company. A style that does not lose popularity over time. Merchandise that is purchased frequently, without advance planning, including staples, impulse items, and emergency items. A group in which several retailers pool their resources to buy products at a discount from manufacturers also called group buying. A receipt from a delivery driver that indicates a delivery was made to a store. A large retail store that sells a variety of merchandise, organi!ed into departments according to the kind of merchandise. The process of distinguishing services or products through design. A list of the departments of a department store and their locations. A self"service retail store with low markups. #xample$ %al"Mart, &mart. A buying method that depends on the amount of purchases, rather than the number of items purchased. 'roducts that can be used frequently and have a long life expectancy, such as furniture, (ewelry, and ma(or appliances. )hopping over the *nternet or through a T+ cable channel. 'roducts that are purchased in an unusual situation when need is suddenly high, such as umbrellas during a rainstorm. A fashion that gains and loses popularity very quickly. The popularity of a certain product, style, or appearance. The process of a fashion gaining and losing mass acceptance. ,irst in"first out a system of stock rotation in which the merchandise that is received first by a store is the merchandise that is sold first. A group of employees, especially in a department store, who are not assigned to any specific department, but work wherever they are needed. -eserve stock that is kept in a stock room near the selling floor. Merchandise that is kept on the selling floor. The rear of a window display that completely covers the display, closing it off from the store. Describes department stores that carry a full line of merchandise, from appliances and hardware to clothing and (ewelry. A product.service mix that offers a good that needs or is enhanced by services, such as a service contract or warranty.

Goods. Grade La%eling Group Buying Gu$$ed La%el *ard Line. *eterogenous "roducts *ole "in Ticket *o$e &urnishings *o$ogenous "roducts *yper$arket I$age I$pulse Ite$s Infor$ati!e La%eling Leased #epart$ent Li$ited Line +erchandising "lan +erger +ultiline #rugstore ,ondura%le Goods ,on$arking Open Background O!ererr "artial Background "atronage Buying +oti!e "in Ticket "oint(Of(Sale Ter$inal "re$arking "reretailing

Tangible products for sale that can be held or touched 'roduct labeling that includes a quality rating for the product. A group in which several retailers pool their resources to buy products at a discount from manufacturers also called a cooperative. A pricing ticket with adhesive on the back, used on cloth, leather, and unpainted wood. Describes all nontextile merchandise Durable products that are different in quality, appearance, and other features. A pricing ticket used on paired items such as gloves. -efers to all furniture and accessories for the home, including dishes and glassware, rugs, and furniture. Durable products that are similar in quality, but different in price and require comparisons. A huge retail store that is a combination of a drugstore, supermarket, and discount store. The impression customers have of a company or service. 'roducts that people purchase without planning for it, such as maga!ines or candy bars. 'roduct labeling that includes the product/s performance in tests. A part of a department store that is actually leased out to another company and operated as an independent store within the department store common with cosmetics companies. Describes a department store that carries a limited amount of merchandise, usually concentrating on clothing, accessories, and beauty supplies. A strategy for actual and pro(ected sales for a specific period of time. The combining of two or more retail organi!ations into one company. A store that sells a variety of health and beauty products, plus some small appliances and household items, in addition to prescription drugs. 'roducts that are purchased frequently and used in a short period of time, such as beauty supplies and cosmetics. A pricing system in which each individual item does not have a price tag, instead a price is labeled on a bin or a shelf. Describes a window display with a completely unobstructed view of the interior of the store. A mistake made when an employee enters an amount into the register that is more than the sale price. The rear of a window display that is partially covered, but allows customers to see through the display into the store. A reason customers will shop at one store instead of another, can be rational or emotional. The sort of price ticket used on towels and washcloths that is attached with a pin. An electronic machine at a checkout station that feeds information from product tags directly into a computer. A system in which the manufacturer, rather than the retailer, marks merchandise with the retail price. A system in which a duplicate purchase order is sent to receiving when merchandise is ordered so that as soon as the merchandise is received,

"roduct-Ser!ice +i. "roduct-Ser!ice "lanning "rofit enter "ro.e$ics "ull "olicy "ush "olicy Reser!e Stock Resident Buying Office Retailers Retailing Strategy Returns "ercentage Ringseal Ticket Scri$ Ser!ice Ser!ice )ith Acco$panying "roducts Ser!ices Shoplifting #etection )afer Shopping Ite$s Soft Line Specialty "roducts Specialty Store Specification Buying Staples Stock keeping /nit 0S1/2 Store Operations String Ticket Supporti!e Ser!ices Tangi%le "roduct

it can be marked with the correct prices. The number and kind of products and services a general merchandise retailer will offer. The process of deciding what the product.service mix will be. A section of a store that earns money for the retailer. The nonverbal communication suggested by the space between two people. A promotional policy aimed at building strong consumer demand for a product. A promotional policy aimed at markets with the intention of getting retailers to stock a product in order to build supply in the marketplace. Merchandise that is kept somewhere other than the selling floor. An office located in a central merchandising area where buyers can receive information about products from a variety of manufacturers. 0usinesses that buy goods from wholesalers or manufacturers and resell them to customers. A strategic plan to adapt to changing technology and markets, and meet company goals and ob(ectives through retailing. The relationship between returns and allowances, and sales, calculated by dividing returns and allowances by gross sales. A pricing ticket shaped like a butterfly bandage, used on (ewelry and lampshades. A sheer fabric onto which pictures can be painted to be used as a transparent backdrop in the theater and as a visual merchandising prop in stores. A product.service mix that offers only a service, with no accompanying product needed or wanted, such as an insurance policy. A product.service mix in which a service is the primary offering, such as interior decorating, and products, such as curtains and carpet, are offered to accompany and augment the service. *ntangible items for purchase, such as haircuts or tax advice, that provide customer satisfaction without the ownership of a tangible item. A small device attached to goods, especially clothing, that sets off an alarm if it leaves the store. Durable goods that require a great deal of comparison before purchase, such as appliances and furniture. Describes textile products. 'roducts that solve a specific want or need for specific customers, often expensive products with special characteristics or brand identity. A store that speciali!es in selling a specific kind of product. Demands made by retailers and wholesalers to manufacturers of the products they sponsor and sell. 'roducts that are purchased routinely for everyday use, with little decision"making, and that must be in stock at all times, such as cleaning supplies and food. #ach item or group of related items in a unit control inventory system. *ncludes all functions of operating a store except merchandising, such as customer service, protection, maintenance, and distribution. A pricing ticket attached with a piece of string. ,ree services offered to customers to increase convenience, make shopping easier, and entice customers to buy more. A product.service mix that offers only a tangible product for which the customer needs no assistance and no other services are offered, such as

Te.tile +erchandise T'ig /nder(The( ounter Stock /ndererr /nit ontrol /ni!ersal "roduct ode 0/" 2 /ni!ersal 3endor +arketing 0/3+2 /nsought "roducts 3ariety Store )arehouse lu% )arehouse Reser!e Stock

most groceries and back"to"school items. 'roducts made from natural or manmade fibers, including clothing, curtains, and bedding. A small store operated by a department store that carries only a very limited amount of merchandise, usually focusing on a few related items. Merchandise that is kept in drawers or cabinets where customers cannot reach them, common with cosmetics counters. A mistake that occurs when an employee enters an amount into the cash register that is less than the sale price. A buying method in which the buyer makes buying decisions based on inventory and sales records, rather than the cost of items purchased. 0ar code used for electronic entry. 'roduct code that appears as a series of numbers across the top of a price tag. 'roducts that consumers don/t know about and aren/t asking for. A store that focuses on low"cost, stock merchandise, with a limited selection of low"cost furniture and appliances. A giant store that sells merchandise in bulk at low prices, and in which customers must buy a membership in order to shop. -eserve stock that is stored in a warehouse, with only one example item on display.

Glossary
0in.Display 0in 0ricks and mortar store 0uying 'ower 1atchment 2area3 1hain 1heckout 1ombination )tore 1o"operative 1o"op 1oncessionaire 1ourier Dedicated 2vehicle3 Delivery Delivery 1onsolidation Distance -etailing Distributor Downstream Distribution Dress 1ode Dry 5rocery ,inished 5oods ,ranchise ,ranchisee ,ranchisor 5alvani!ed Metal 5arment 1over 5arment 'rocessor 5eneral )tore 5ondola 2fixture3 6aulier 6ub Distribution 8ogistics Margin Merchandising Multiple 2store3 A large box in which products for sale are kept on the shop floor A shop that is in a building as opposed to an internet shopping site, a street market stall, party sales, van sales or door"to"door sales The ability to negotiate favorable terms due to the proposition of high volume purchases The area from where the ma(ority of a shop/s customers are located As in 4chain stores4. A chain is a group of stores operated under one organi!ation or brand The point where customers declare and pay for their goods A store that combines two or more specialist product areas An organi!ation that is (ointly owned and or managed by its members and is run for the mutual benefit of members 1o"operative A store within a store )hipper A vehicle delivering to one location only 1ollating products in order to produce appropriate delivery batches )ales of goods between two distant parties where the deliverer has no direct interest in the transaction )hipper ,orward movement of goods through the supply chain -ules on what clothes can and can/t be worn 5enerally food that is not fresh 5enerally products that are ready to be consumed A trading entity such as a marketing tool or method, a product or group of products or simply a trade brand The party that sells goods and services within the framework of the franchise The party that established 2manages3 the franchise Metal that is coated with an anti"corrosive material such as !inc A protective cover for clothes, ranging from a simple polythene garment cover to a heavy duty !ipped bag The function that receives finished clothes and steams, folds, hangs or packs them, ready for sale A shop that sells a variety of goods including food A free standing display fixture where all sides are accessible to customers )hipper 7sing a central location to collate and consolidate products prior to onward dispatch The planning and execution of product distribution 'rofit The way that products are displayed in a shop -etail 1hain

9ne"stop"shop 9utlet 'allet 'itch 'olyester 'olyhook 0ag 'rice %ar 'rimary 'ackaging 'rocurement 'roduct 9ffer -etail 1hain -everse 8ogistics )ales 'romotion )econdary 'ackaging )elf")ervice )hadow 0ox )pot Delivery )taple 5oods )upply 1hain Tertiary 'ackaging Transporter 7pper 5arments 7pstream Distribution +olume

-etail outlet that caters for virtually every need within a product or service group or across all products and services )hop A large flat board that is used to hold and move products A plot of land used by street traders As in sales pitch, the approach, emphasis and nuances used when articulating the virtues of a service or product )ynthetic polymer often used to coat household goods such as refrigerators A bag that contains a small plastic hangar as an integral part of the top of the bag A colloquial phrase denoting aggressive price reductions on the same 2or similar3 products by competing retailers The immediate packaging around the finished product 9btaining 5oods 'roduct/s attributes, including price A group of shops operated by the same organi!ation -everse movement of goods through the supply chain A time"limited period when a product or group of products are given extra publicity and intense marketing The container in which several finished packs would be distributed 2and sometimes displayed in3 A store where customers can pick the goods directly from the display and take them to the checkout for payment A cabinet display built into a wall A single one"off delivery 'roducts that are regularly purchased and are a necessity The route that products take from their production through to their consumption The carrier for the secondary packaging )hipper 1lothes worn on the upper part of the body -everse movement of goods through the supply chain The amount of stock being sold

Back order Balanced stock Barcode Barcode scanner Brand

Brand i$age

Brand loyalty Buying po'er apti!e Brands

apti!e $arket arry(o!er $erchandise losing in!entory ode of 3endor onduct o$petition onsu$er

ost of goods sold ost price #epart$ent store

A system used by suppliers when stock is not available at the time of order to save a store from having to place another order. Merchandise that is offered by a store in sufficient quantities, colours, styles, si!es and assortment characteristics to meet the customers/ needs. A series of stripes located on a product which allows a scanning device to recognise the product. An electronic device used to read barcodes. May be and individual unit for stock processing or attached to 'oint of )ale systems for sales recording. A name, term, sign, symbol, or a combination of these used to identify the products of one seller or group of sellers and differentiate them from those of competitors. The total of all the impressions the consumer receives from the brand. These include actual experience, hearsay from other consumers, its packaging, its name, the kind of store in which it is sold, advertising, the tone and form of advertising, the media used for advertising, and the types of people seen using, buying or recommending the brand. The degree of consumer preference for one brand compared to close substitutes it is often measured statistically in consumer marketing research. The ability to buy in large quantities and thereby attract special price or discount. #xclusive merchandise assortments where the brand mark is owned by someone other than the company selling the merchandise and the design, product development and sourcing is either completed in house or with an external partner. The potential clientele of retail or service businesses located in areas where consumers may have no reasonable alternative sources of supply. 5oods left over from one season that are carried over to the next season. The value of stock on hand at the end of an accounting period, either at cost or retail value. A regulatory document used to monitor labour and safety conditions of factories used by vendors. manufacturers of a company. Any store which sells or provides similar products or services. *nvolves any other store selling full or part ranges of the same types of products. *ndividual, household or family as purchaser and user of goods as distinguished from business or industrial user who may buy for resale or re"manufacturing. The amount which the retailer has paid for goods actually resold. *t includes the invoice cost, discounts, rebates, shrinkage and freight charges. ,ormula$ opening stock 2at cost3 plus purchases 2at cost3 less closing stock 2at cost3. An amount which the retailer pays to the supplier.vendor for goods A retail organi!ation which carries a wide range of merchandise that is organi!ed into separate departments for the purpose of promotion, service and control.

#irect %uying E#L" &lagship store &lyer Gross $argin Leased- Licensed depart$ent Loss pre!ention +argin +arkdo'n +arket leader +arket share +arkup +erchandise $i. ,ational Brands ,ational Brand E.clusi!es O!erhead "o'er entre "rice para$eters "rice points "ricing policy "ri!ate Brands "rofit "ro$otion "ro$otional ad!ertising Reco$$ended retail price

0uying directly from a manufacturer. #veryday 8ow 'ricing. A pricing policy based on the lowest prices everyday rather than sale markdowns. The leading store within a group, usually the biggest in si!e and stock holding and used as a benchmark against which other stores are measured. *.e. The 0ay :ueen )treet is the flagship 0ay store in 9ntario. An advertising brochure inserted in newspapers, maga!ines or directly mailed to customers. The difference between net sales and the cost of goods sold. *t is also referred to as gross profit. A small externally owned department that leases space within a " department store. *.e. ;ellers/ 9ptical is a licensed department. A term used to describe a number of methods used to reduce the amount of all losses and shrinkage. The amount of gross profit made when an item is sold. The reduction of an item/s selling price. The company, product or brand of product that has the largest sales to the consumer in a particular market 6ow much of the total market a company, product or brand of product attracts. The amount added to the cost price of goods to give the required selling price. The ratio of the types, styles, si!es, colours, prices, etc. to the quantities of the merchandise kept in a store to satisfy its target market. <on exclusive assortments where the mark is owned by someone else and the design, product development and sourcing is completed by the external partner. #xclusive merchandise assortments where the mark is owned by someone else and the design, product development and sourcing is completed by the external partner. An expense not directly adding to or identifiable with the product or service sold, e.g. electricity costs. A collection of big"box retailers that are category killers assembled together on one site with no interior mall. The lowest and highest prices of a product range. The various different prices of products in a range between the price parameters. An overall pricing strategy dictating how products and services are priced. #xclusive merchandise assortments where the company owns the brand mark and the design, product development and sourcing is either completed in house or with an external partner. A general term for the excess of revenue, proceeds, or selling price over related costs. The highlighting of products through in"store and.or external advertising. Advertising intended to inform prospective customers of special sales, new products and seasonal goods and to maintain a market for the merchandise in regular stock. A selling price of goods suggested by the supplier. The retailer is not bound to use this price.

Refund Retailing Sales floor Sales forecast Sales !olu$e Sa$e store sales Seasonal $erchandise Shopping centre Specialty store Target $arket Trade$ark Traffic flo' Transaction )rite(off

The return of payment to the customer for goods that have been " returned. All activities directly related to the sale of goods and services to the ultimate consumer for personal, non"business use. The area in which products and services are displayed and the sales transaction is processed. An estimate of sales 2in dollars, units, etc.3 for a specified future period. The quantity of total sales achieved in units or dollars, etc. )ame store sales 2or comparable store sales3 are sales of stores that have been opened for one year or more. A line of goods sold in a specific season or period, e.g. summer, winter, 1hristmas and #aster. A geographical cluster of retail stores collectively stocking an assortment of goods varied enough to satisfy most of the merchandise wants of consumers within convenient traveling time, and thereby attracting a general shopping trade. A store which handles a limited variety of goods which have unique characteristics. The potential group of customers to which all retail activities are " directed in an effort to attract them. A brand or part of a brand that is given legal protection because it is capable of exclusive appropriation and is used in a distinctive way. The number and direction of customers in and around a store. Any exchange process of stock and payment to and from a supplier, retailer or customer. The reduction of a product/s value to !ero.

Additional +arkup Additional +arkup "ercentage Addition to Retail "ercentage Ad!ertising Affinity All(You( an(Afford +ethod

An increase in a retail price above the original markup that is used when demand is unexpectedly high or when costs are rising. 8ooks at total dollar additional markups as a percentage of net sales$ Measures a price rise as a percentage of original price$ Any paid, nonpersonal communication transmitted through out"of"store mass media by an identified sponsor. #xists when the various stores at a given location complement, blend, and cooperate with one another, and each benefits from the others/ presence. A promotional budgeting technique in which a retailer first allots funds for each element of the retail strategy mix except promotion. %hatever funds are left over are placed in a promotional budget. A computer site"selection tool in which potential sales are estimated on the basis of existing store revenues in similar areas, the competition at a prospective location, the new store/s expected market shares at that location, and the si!e and density of the location/s primary trading area. #xtra elements that enhance a retail strategy mix. They do not have to be provided. The first tool used to screen applicants. *t provides data on education, experience, health, reasons for leaving prior (obs, organi!ational memberships, hobbies, and references. Any items a retailer owns with a monetary value. A performance measure based on a retailer/s net sales and total assets. *t is equal to net sales divided by total assets. An interior display in which a retailer exhibits a wide range of merchandise for the customer. *t may be open or closed. -efers to a store/s physical characteristics that are used to develop an image and draw customers. See Atmosphere. The positive, neutral, or negative feelings a person has about the economy, politics, goods, services, institutions, and so on. 8ists the area2s3 to be examined and the exact information required in evaluating each area. 1ontrols the amount and timing of markdowns on the basis of the length of time merchandise remains in stock. 9rders merchandise when stock"on"hand reaches a pre" determined reorder point. An automatic reorder can be generated by a computer on the basis of a perpetual inventory system and reorder point calculations. An illegal practice whereby a retailer lures a customer by advertising goods and services at exceptionally low prices

Analog +odel Ancillary usto$er Ser!ices Application Blank Assets Asset Turno!er Assort$ent #isplay At$osphere At$ospherics Attitudes 0Opinions2 Audit &or$ Auto$atic +arkdo'n "lan Auto$atic Reordering Syste$ Bait Ad!ertising

Bait(and(S'itch Ad!ertising Balanced Tenancy

then, once the customer contacts the retailer, he or she is told the good.service of interest is out of stock or of inferior quality. A salesperson tries to convince the customer to purchase a better, more expensive substitute that is available. The retailer has no intention of selling the advertised item. See 0ait Advertising. 9ccurs when stores in a planned shopping center complement each other in the quality and variety of their product offerings. The kind and number of stores are linked to the overall needs of the surrounding population. *temi!es a retailer/s assets, liabilities, and net worth at a specific point in time it is based on the principle that assets equal liabilities plus net worth. )pecifies the inventory level, color, brand, style category, si!e, package, and so on for every staple item carried by the retailer. An inventory"level planning tool wherein a retailer carries more items than it expects to sell over a specified period$ %hen retailers and manufacturers compete for shelf space allocated to various brands and for control over display locations. 9ccurs when the retailer sets its own standards and measures performance based on the achievements of its sector of retailing, specific competitors, high"performance firms, and.or the prior actions of the company itself. Denotes the decline of middle"of"the"market retailing due to the popularity of both mass merchandising and positioned retailing. &eeps a running total of the value of all inventory on hand at cost at a given time. This is done by regularly recording purchases and adding them to existing inventory value sales transactions are then subtracted to arrive at the new current inventory value 2all at cost3. #xists when planning starts at the individual product level and then proceeds to the category, total store, and overall company levels. A food"based discounter that focuses on a small selection of items, moderate hours of operation 2compared to supermarkets3, few services, and limited national brands. See 0uying 'ower *ndex. 9utlines a retailer/s planned expenditures for a given time period based on its expected performance. *nvolves a retailer providing a number of services for one basic price. An arrangement in which the franchisee receives assistance on site location, quality control, accounting systems, startup practices, management training, and responding to problems "" besides the right to sell goods and services.

Balance Sheet Basic Stock List Basic Stock +ethod Battle of the Brands

Bench$arking

Bifurcated Retailing

Book In!entory Syste$

Botto$(/p Space +anage$ent Approach Bo. 0Li$ited(Line2 Store B"I Budgeting Bundled "ricing Business &or$at &ranchising

Buying "o'er Inde. 0B"I2 anned Sales "resentation apital E.penditures ase #isplay ash &lo' ategory 1iller Store ategory +anage$ent B# ensus of "opulation entral Business #istrict 0 B#2 entrali4ed Buying Organi4ation hain hannel ontrol hannel of #istri%ution lass onsciousness lassification +erchandising O# 0 ollect on #eli!ery2 ogniti!e #issonance ollect on #eli!ery o$%ination Store

A measure of a geographic area/s market characteristics, expressed in terms of the area/s percentage of 7.). effective buying income, the area/s percentage of 7.). retail sales, and the area/s percentage of 7.). population3. A memori!ed, repetitive speech given to all customers interested in a particular item. -etail expenditures that are long"term investments in fixed assets. #mployed to exhibit heavier, bulkier items than racks hold. -elates the amount and timing of revenues received to the amount and timing of expenditures made during a specific time period. An especially large specialty store featuring an enormous selection in its product category and relatively low prices. *t draws consumers from wide geographic areas. A relationship"oriented technique that some firms, especially supermarkets, are beginning to use to improve shelf"space productivity. See 1entral 0usiness District. )upplies a wide range of demographic data for all 7.). cities and surrounding vicinities. Data are organi!ed on a geographic basis. The hub of retailing in a city. *t is the largest shopping area in that city and is synonymous with the term 4downtown.4 The 10D exists where there is the greatest concentration of office buildings and retail stores. 9ccurs when a retailer has all purchase decisions emanating from one office. Multiple retail units under common ownership that engage in some level of centrali!ed 2or coordinated3 purchasing and decision making. 9ccurs when one member of a distribution channel can dominate the decisions made in that channel by the power it possesses. 1omprises all of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer. The extent to which a person desires and pursues social status. Allows firms to obtain more financial data by subdividing each specified department into further categories for related types of merchandise. 8ets customers have products delivered to them before payment is made. Doubt that occurs after a purchase is made, which can be alleviated by customer after"care, money"back guarantees, and realistic sales presentations and advertising campaigns. See 19D. 7nites supermarket and general merchandise sales in one

o$$unity Shopping enter o$parati!e Ad!ertising o$pensation o$petition(Oriented "ricing o$petiti!e Ad!antages o$petiti!e "arity +ethod o$petiti!e "ricing

o$puteri4ed heckout

oncentrated +arketing onsign$ent "urchase onstrained #ecision +aking onsu$er Beha!ior

onsu$er ooperati!e

onsu$er #ecision "rocess

onsu$eris$

facility, with general merchandise typically accounting for => percent to ?@ percent of total store sales. A moderate"si!ed, planned shopping facility with a branch department store, a variety store, and.or a category killer store, in addition to several smaller stores. About =@,@@@ to A@@,@@@ people, who live or work within A@ to =@ minutes of the center, are served by this location. Messages comparing a retailer/s offerings with those of competitors. *ncludes direct monetary payments 2such as salaries, commissions, and bonuses3 and indirect payments 2such as paid vacations, health and life insurance benefits, and retirement plans3. An approach in which a retailer sets its prices in accordance with competitors/. The distinct competencies of a retailer relative to competitors. A promotional budgeting technique by which a retailer/s budget is raised or lowered based on the actions of competitors. A marketing"oriented strategy whereby a service retailer sets its prices on the basis of the prices charged by competitors. #nables retailers to efficiently process transactions and have strict inventory control. *n a 7'1"based system, cashiers manually ring up sales or pass items over or past optical scanners. 1omputeri!ed registers instantly record and display sales, customers get detailed receipts, and all inventory data are stored in a computer memory bank. )elling goods and services to one specific group. *tems not paid for by retailer until they are sold. The retailer can return unsold merchandise. Title is not taken by the retailer until the final sale is completed. #xcludes franchisees from or limits their involvement in the strategic planning process. *nvolves the process by which people determine whether, what, when, where, how, from whom, and how often to purchase goods and services. A retail firm owned by its customer members. A group of consumers invests in the company, receives stock certificates, elects officers, manages operations, and shares the profits or savings that accrue. The stages a consumer goes through in buying a good or service$ stimulus, problem awareness, information search, evaluation of alternatives, purchase, and post"purchase behavior. Demographics and life"style factors affect this decision process. *nvolves the activities of government, business, and independent organi!ations that are designed to protect individuals from practices infringing upon their rights as consumers.

ontingency "ricing ontrol ontrolla%le 3aria%les ontrol /nits on!enience Store on!entional Super$arket ooperati!e Ad!ertising ooperati!e Buying ore usto$ers orporation ost o$ple$ent ost +ethod of Accounting

ost of Goods Sold

ost(Oriented "ricing

ost("lus "ricing redit +anage$ent ross(Training ulture

An arrangement whereby the retailer does not get paid until after the service is performed. and payment is contingent on the service/s being satisfactory. The phase in the evaluation of a firm/s strategy and tactics in which a semiannual or annual review of the company takes place. Those aspects of business that the retailer can directly affect 2such as hours of operation and sales personnel3. Merchandise categories for which data are gathered. A food"oriented retailer that is well located, is open long hours, and carries a moderate number of items. *t is small, has average to above"average prices, and average atmosphere and customer services. A departmentali!ed food store that emphasi!es a wide range of food and related products sales of general merchandise are rather limited. 9ccurs when a manufacturer or wholesaler and a retailer, or two or more retailers, share advertising costs. The procedure used when a group of independent retailers gets together to make quantity purchases from a supplier. 1onsumers with whom retailers should seek to nurture long relationships. They should be singled out in a firm/s data base. A retail firm that is formally incorporated under state law. *t is a legal entity apart from individual officers 2or stockholders3. The average relationship of cost to retail value for all merchandise available for sale during a given time period. -equires the retailer/s cost of every item to be recorded on an accounting sheet and.or coded on a price tag or merchandise container. %hen a physical inventory is conducted, every item/s cost must be ascertained, the quantity of every item in stock counted, and the total inventory value at cost calculated. The amount a retailer has paid to acquire the merchandise sold during a given time period. *t equals the cost of merchandise available for sale minus the cost value of ending inventory. An approach in which a retailer sets a price floor, the minimum price acceptable to the firm so it can reach a specified profit goal. A retailer usually computes merchandise and retail operating costs and adds a profit margin to these figures. 9ccurs when a retailer adds its costs to desired profit margins to derive selling prices. *nvolves the policies and practices retailers follow in receiving payments from their customers. #nables personnel to learn tasks associated with more than one (ob. A distinctive heritage shared by a group of people. *t influences the importance of family, work, education, and

ur!ing 0&ree(&lo'ing2 Traffic &lo' usto$ary "ricing usto$er Loyalty 0&requent Shopper2 "rogra$s usto$er Ser!ice

other concepts by passing on a series of beliefs, norms, and customs. 'resents displays and aisles in a free"flowing pattern. A pricing strategy whereby a retailer sets prices for goods and services and seeks to maintain them for an extended period. *ntended to reward a retailer/s best customers, the ones with whom it wants to form long"lasting relationships. -efers to the identifiable, but sometimes intangible, activities undertaken by a retailer in con(unction with the basic goods and services it sells. The area required by shoppers that contributes greatly to a store/s atmosphere. *t can include a lounge, benches and.or chairs, dressing rooms, rest rooms, a restaurant, vertical transportation, a nursery, parking, and wide aisles. An inexpensive display, in which merchandise is left in the original carton. The stage in the research process which assesses secondary and.or primary data and relates it to the defined issue or problem. The procedure used to gather, integrate, apply, and store information related to specific sub(ect areas. *t is a key element in a retail information system. A way of collecting, storing, and using relevant information on customers. A new advance in data"base management whereby copies of all the data bases in a company are maintained in one location and can be assessed by employees at any locale. Awkward spaces where normal displays cannot be set up. See 'rivate 0rands. A computeri!ed system whereby the price of a good or service is immediately deducted from a consumer/s bank account and entered into a retailer/s account. 8ets purchase decisions be made locally or regionally. #nables customers to make purchases and not pay for them for several months, without interest. An approach by which a retailer sets prices based on consumer desires. *t determines the range of prices acceptable to the target market. 9b(ective and quantifiable population data that are easily identifiable and measurable. A large retail unit with an extensive assortment 2width and depth3 of goods and services that is organi!ed into separate departments for purposes of buying, promotion, customer service, and control. -efers to the variety in any one goods.service category with which a retailer is involved.

usto$er Space ut ase #ata Analysis #ata(Base +anage$ent #ata(Base Retailing #ata )arehousing #ead Areas #ealer Brands #e%it( ard Syste$ #ecentrali4ed Buying Organi4ation #eferred Billing #e$and(Oriented "ricing #e$ographics #epart$ent Store #epth of Assort$ent

#estination Retailer #estination Store #ifferentiated +arketing #irect +arketing

#irect "roduct "rofita%ility 0#""2

#irect Selling #irect Store #istri%ution #iscretionary Inco$e #isguised Sur!ey #istri%uted "ro$otion Effort #i!ersification #i!ersified Retailer #i!ersionary "ricing #ollar ontrol #o'nsi4ing #"" #S# #ual 3ertical +arketing Syste$ #u$p Bin Ease of Entry

A retailer to whom consumers will make a special shopping trip. The destination may be a store, a catalog, or a %eb site. A retail outlet with a trading area much larger than that of a competitor with a less unique appeal to customers. *t offers a better merchandise assortment in its product category2ies3, promotes more extensively, and creates a stronger image. Aiming at two or more distinct consumer groups, with different retailing approaches for each group. A form of retailing in which a customer is first exposed to a good or service through a nonpersonal medium and then orders by mail or phone "" sometimes, by computer. 1alculated when a retailer finds the profitability of each category or unit of merchandise by computing ad(usted per" unit gross margin and assigning direct product costs for expense categories such as warehousing, transportation, handling, and selling. *t equals an item/s gross profit less its direct retailing costs. *ncludes both personal contact with consumers in their homes 2and other nonstore locations such as offices3 and phone solicitations initiated by a retailer. #xists when retailers have at least some goods shipped directly from suppliers to individual stores. *t works best with retailers that also utili!e #D*. Money left after paying taxes and buying necessities. A technique in which the respondent is not told the real purpose of a research study. 7sed by retailers that promote throughout the year. The way in which retailers become active in business outside their normal operations "" and add different goods and.or service categories. A multiline merchandising firm under central ownership. *t is also known as a retail conglomerate or conglomerchant. A practice used by deceptive service firms. A low price is stated for one or a few services 2emphasi!ed in promotion3 to give the illusion that all prices are low. *nvolves planning and monitoring a retailer/s financial investment in merchandise over a stated time period. #xists when unprofitable stores are closed or divisions are sold off by retailers dissatisfied with their performance. See Direct 'roduct 'rofitability. See Direct )tore Distribution. *nvolves firms involved in more than one type of distribution arrangement. This enables those firms to appeal to different consumers, increase revenues, share some of their costs, and maintain a good degree of control over their strategy. A case display that houses piles of sale clothing, marked" down books, or other products. 9ccurs for retailers due to low capital requirements and no, or

EBI Econo$ic Base Econo$ic Order 5uantity 0EO52 E R E#I Editor 6 "u%lisher +arket Guide E#L" Effecti!e Buying Inco$e 0EBI2 Efficient onsu$er Response 0E R2 Electronic Article Sur!eillance Electronic Banking Electronic #ata Interchange 0E#I2 Electronic "oint(of(Sale Syste$

E$ployee E$po'er$ent Ense$%le #isplay EO5 Equal Store Organi4ation Ethics E!aluation of Alternati!es E!eryday Lo' "ricing 0E#L"2

relatively simple, licensing provisions. See #ffective 0uying *ncome. -efers to an area/s industrial and commercial structure "" the companies and industries that residents depend on to earn a living. The quantity per order 2in units3 that minimi!es the total costs of processing orders and holding inventory. See #fficient 1onsumer -esponse. See #lectronic Data *nterchange. 'rovides considerable economic base data for cities on a yearly basis. *t also contains statistics on population si!e and total households by city. See #veryday 8ow 'ricing. 'ersonal income 2wages, salaries, interest, dividends, profits, rental income, and pension income3 minus federal, state, and local taxes and nontax payments 2such as personal contributions for social security insurance3. *t is commonly known as disposable personal income. A form of logistics management through which supermarkets are incorporating aspects of quick response inventory planning, electronic data interchange, and logistics planning. *nvolves attaching specially designed tags or labels to products. *nvolves both the use of automatic teller machines 2ATMs3 and the instant processing of retail purchases. 8ets retailers and suppliers regularly exchange information through their computers with regard to inventory levels, delivery times, unit sales, and so on, of particular items. 'erforms all tasks of a computeri!ed checkout and also verifies check and charge transactions, provides instantaneous sales reports, monitors and changes prices, sends intra" and interstore messages, evaluates personnel and profitability, and stores data. A method of improving customer service in which workers have discretion to do what they believe is necessary "" within reason "" to satisfy the customer, even if this means bending some company rules. An interior display whereby coordinated merchandise is grouped and displayed together. See #conomic 9rder :uantity. 1entrali!es the buying function. The branches become sales units with equal operational status. 8et a retailer act in a trustworthy, fair, honest, and respectful manner with each of its constituencies. The stage in the decision process where a consumer selects one good or service to buy from a list of alternatives. A version of customary pricing, whereby a retailer strives to sell its goods and services at consistently low prices throughout the selling season.

Takes place when suppliers enter into agreements with one or a few retailers that designate the latter as the only companies E.clusi!e #istri%ution in specified geographic areas to carry certain brands and.or product lines. A type of research in which one or more elements of a retail E.peri$ent strategy mix are manipulated under controlled conditions. 9ccurs when a consumer makes full use of the decision E.tended #ecision +aking process, usually for expensive, complex goods and services with which the consumer has had little or no experience. E.ternal Secondary #ata Available from sources outside a firm. A manufacturer"owned store selling that firm/s closeouts, &actory Outlet discontinued merchandise, irregulars, canceled orders, and, sometimes, in"season, first"quality merchandise. Describes how a traditional family evolves from &a$ily Life ycle bachelorhood to children to solitary retirement. )ignals or cues as to the success or failure of part of a retail &eed%ack strategy. 8ogically assumes old merchandise is sold first, while newer &I&O +ethod items remain in inventory. *t matches inventory value with the current cost structure. A performance measure based on the relationship between a &inancial Le!erage retailer/s total assets and net worth. *t is equal to total assets divided by net worth. 9ccurs when a retailer specifies exactly which products are &inancial +erchandise purchased, when products are purchased, and how many +anage$ent products are purchased. #xists in situations where a branch of government has some &i.ed "ricing degree of control and retailers must conform to a stated price structure. &lat Organi4ation A firm with many subordinates reporting to one supervisor. 6as many retail vendors offering a range of products at discount prices in plain surroundings. Many flea markets are &lea +arket located in nontraditional sites not normally associated with retailing. They may be indoor or outdoor. A strategy that allows consumers to bargain over selling &le.i%le "ricing prices those consumers who are good at bargaining obtain lower prices than those who are not. *tems that are received at the store in condition to be put &loor(Ready +erchandise directly on display without any preparation by retail workers. A retailer that is larger and more diversified than a conventional supermarket but usually smaller and less &ood(Based Superstore diversified than a combination store. *t caters to consumers/ complete grocery needs and offers them the ability to buy fill" in general merchandise. &or$al Buying +iews the merchandise"buying function as a distinct retail Organi4ation task a separate department is set up. &ranchising *nvolves a contractual arrangement between a franchisor 2a manufacturer, a wholesaler, or a service sponsor3 and a retail franchisee, which allows the franchisee to conduct a given

&ree(&lo'ing Traffic &lo' &requency &requent Shopper "rogra$s &ringe Trading Area

form of business under an established name and according to a given pattern of business. See 1urving Traffic ,low. The average number of times each person who is reached is exposed to a retailer/s ads in a specific period. See 1ustomer 8oyalty 'rograms. *ncludes the customers not found in primary and secondary trading areas. These are the most widely dispersed customers. A type of department store characteri!ed by 2A3 a broad merchandise assortment 2=3 centrali!ed checkout service 2B3 merchandise normally sold by self"service with minimal assistance 2?3 no catalog order service 2>3 private"brand nondurable goods and well"known manufacturer"brand durable goods 2C3 hard goods accounting for a much greater percentage of sales than at traditional department stores 2D3 a relatively inexpensive building, equipment, and fixtures and 2E3 less emphasis on credit sales than in full"service stores. 1ategori!e and display a store/s merchandise by common end uses. #nables a company to compare its actual performance against its potential performance, and then determine the areas in which it must improve. <o"frills goods stocked by some retailers. These items usually receive secondary shelf locations, have little or no promotion support, are sometimes of less overall quality than other brands, are stocked in limited assortments, and have plain packages. 1ombine digiti!ed mapping with key locational data to graphically depict such trading"area characteristics as the demographics of the population, data on customer purchases, and listings of current, proposed, and competitor locations. A technique used by retailers in evaluating the trading area of a store. %ith it, a firm learns the distances people are apt to travel to get to a store, the population density of the geographic area surrounding the store, and the travel patterns and times from various sites. See 5eographic *nformation )ystems. See 5ross Margin -eturn on *nvestment. #numerates a position/s basic functions, the relationship of each (ob to overall goals, the interdependence of positions, and information flows. ,ocuses on the sale of tangible 2physical3 products. A retail firm/s line of business. 1alls for precise rent increases over a specified period of time. A computer site"selection model based on the premise that people are drawn to stores that are closer and more attractive than competitors/.

&ull(Line #iscount Store

&unctional "roduct Groupings Gap Analysis

Generic Brands

Geographic Infor$ation Syste$s 0GIS2

Geographic +apping GIS G+ROI Goal(Oriented 7o% #escription Goods Retailing Goods-Ser!ice ategory Graduated Lease Gra!ity +odel

Gray +arket Goods Gridiron Traffic &lo' Gross +argin Gross +argin Return on In!est$ent 0G+ROI2 Gross "rofit *er4%erg8s Theory *idden Assets *ierarchy of Authority *ierarchy(of(Effects +odel *ori4ontal ooperati!e( Ad!ertising Agree$ent *ori4ontal "rice &i.ing

*ori4ontal Retail Audit *ousehold Life ycle *uff8s La' of Shopper Attraction *u$an Resource +anage$ent *u$an Resource +anage$ent "rocess I$age I$ple$entation

0rand"name products purchased in foreign markets or goods transshipped from other retailers. They are often sold at low prices by unauthori!ed dealers. See )traight Traffic ,low. The difference between net sales and the total cost of goods sold. Also known as 5ross 'rofit. )hows the relationship between total dollar operating profits and the average inventory investment 2at cost3 by combining profitability and sales"to"stock measures. The difference between net sales and the cost of goods sold. Also known as 5ross Margin. )ays the factors involved in producing (ob satisfaction and motivation 2satisfiers3 differ from those leading to (ob dissatisfaction 2dissatisfiers3. Depreciated assets, such as store buildings and warehouses, that are reflected on a retailer/s balance sheet at low values relative to their actual worth. 9utlines the (ob relationships within a company by describing the reporting relationships among employees. 1oordination and control are provided. The sequence of steps a consumer goes through in reacting to a retailer/s communication efforts that leads him or her from awareness to knowledge to liking to preference to conviction to a purchase. #nables two or more retailers 2usually small, situated together, or franchisees of the same company3 to share an ad. *nvolves agreements among manufacturers, among wholesalers, or among retailers to set prices. This is, regardless of how 4reasonable4 resultant prices may be. *nvolves analy!ing a retail firm/s overall performance, from its organi!ational mission to goals to customer satisfaction to basic retail strategy mix and its implementation in an integrated, consistent way. *ncorporates life stages of both family and nonfamily households. Delineates trading areas on the basis of the product assortment carried at various shopping locations, travel times from the consumer/s home to alternative shopping locations, and the sensitivity of the kind of shopping to travel time. *nvolves the recruitment, selection, training, compensation, and supervision of personnel in a manner consistent with the retailer/s organi!ation structure and strategy mix. 1onsists of these interrelated personnel activities$ recruitment, selection, training, compensation, and supervision. The goals are to obtain, develop, and retain employees. -epresents how a given retailer is perceived by consumers and others. The stage in the research process during which

I$pulse "urchases Inco$e State$ent Incre$ental Budgeting Incre$ental +ethod Independent Info$ercial

Infor$al Buying Organi4ation Infor$ation Search

Initial +arkup 0at Retail2 Inside Buying Organi4ation Intensi!e #istri%ution Internal Secondary #ata Internet In!entory +anage$ent In!entory Shrinkage Isolated Store Issue 0"ro%le$2 #efinition Ite$ "rice Re$o!al

recommendations are put into practice. 9ccur when consumers purchase products and.or brands they had not planned on buying before entering a store, reading a mail"order catalog, seeing a T+ shopping show, tuning to the %orld %ide %eb, and so on. See 'rofit"and"8oss )tatement. The process whereby a firm uses current and past budgets as guides and adds or subtracts from these budgets to arrive at the coming period/s expenditures. A promotional budgeting technique by which a percentage is either added to or subtracted from one year/s budget to determine the next year/s. A retailer that owns only one retail unit. A program"length T+ advertisement 2most often, B@ minutes in length3 for a specific good or service that airs on cable television or on broadcast television at a fringe time. *t is particularly worthwhile for products that benefit from visual demonstrations. Does not view merchandising as a distinct retail function the same personnel handle both merchandising and other retail tasks. 1onsists of two parts$ determining the alternative goods or services that will solve the problem at hand 2and where they can be bought3 and ascertaining the characteristics of each alternative. )earch may be internal or external. 0ased on the original retail value assigned to merchandise less the merchandise costs, expressed as a percentage of the original retail price. )taffed by a retailer/s own personnel merchandise decisions are made by permanent employees of the firm. Takes place when suppliers sell through as many retailers as possible. This arrangement usually maximi!es suppliers/ sales and it enables retailers to offer many brands and product versions. Available within a company. A global electronic superhighway of computer networks that use a common protocol and are linked by telecommunications lines and satellite. *nvolves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. *nvolves employee theft, customer shoplifting, and vendor fraud. A freestanding retail outlet located on either a highway or a street. There are no ad(acent retailers with which this type of store shares traffic. A step in the marketing research process that involves a clear statement of the topic to be studied. A practice whereby prices are marked only on shelves or

7o% Analysis 7o% +oti!ation 7o% Standardi4ation Laya'ay "lan LBO Leader "ricing

Leased #epart$ent Le!eraged Buyout 0LBO2 Lia%ilities Life(Styles LI&O +ethod Li$ited #ecision +aking Li$ited(Line Store Logistics Loss Leaders +aintained +arkup 0at Retail2 +aintenance(Increase( Recoup$ent Lease +anufacturer 0,ational2 Brands +arkdo'n

signs and not on individual items. This practice is banned in several states and local communities. 1onsists of gathering data about each (ob/s functions and requirements$ duties, responsibilities, aptitude, interest, education, experience, and physical condition. The drive within people to attain work"related goals. &eeps the tasks of personnel with similar positions in different departments, such as cashiers and stockpeople in clothing and candy departments, rather uniform. Allows customers to give a retailer deposits to hold products. %hen customers complete payments, they take the items. See 8everaged 0uyout. 9ccurs when a retailer advertises and sells selected items in its goods.service assortment at less than usual profit margins. The goal is to increase customer traffic in the hope of selling regularly priced goods and services in addition to the specially priced items. A department in a retail store "" usually a department, discount, or specialty store "" that is rented to an outside party. An ownership change that is mostly financed by loans from banks, investors, and others. Any financial obligations a retailer incurs in operating a business. The ways in which individual consumers and families 2households3 live and spend time and money. Assumes new merchandise is sold first, while older stock remains in inventory. *t matches current sales with the current cost structure. 9ccurs when a consumer uses each of the steps in the purchase process but does not need to spend a great deal of time on each of them. See 0ox )tore. The total process of moving goods from a manufacturer to a customer in the most timely and cost"efficient manner possible. *tems priced below cost to lure more customer traffic. 8oss leaders are restricted by state minimum"price laws. 0ased on the actual prices received for merchandise sold during a time period less merchandise cost, expressed as a percentage. 6as a provision allowing for rent increases if a property owner/s taxes, heating bills, insurance, or other expenses rise beyond a certain point. 'roduced and controlled by manufacturers. They are usually well known, supported by manufacturer ads, somewhat pre" sold to consumers, require limited retailer investment, and often represent maximum product quality to consumers. A reduction from selling price to meet the lower price of

+arkdo'n "ercentage +arketing Research in Retailing +arketing Research "rocess +arket "enetration +arket(Seg$ent "roduct Groupings +arket Ski$$ing +arkup +arkup "ercentage 0at ost2 +arkup "ercentage 0at Retail2 +arkup "ricing +arquee +assed "ro$otion Effort +ass +arketing +ass +erchandising +a4ur "lan

+ega$all +e$%ership lu% +e$orandu$ "urchase +erchandise A!aila%le for Sale +erchandise Buying and

another retailer, adapt to inventory overstocking, clear out shopworn merchandise, reduce assortments of odds and ends, and increase customer traffic. The total dollar markdown as a percentage of net sales 2in dollars3. #ntails the collection and analysis of information relating to specific issues or problems facing a retailer. #mbodies a series of activities$ defining the issue or problem to be studied, examining secondary data, generating primary data 2if needed3, analy!ing data, making recommendations, and implementing findings. A pricing strategy in which a retailer seeks to achieve large revenues by setting low prices and selling a high unit volume. 'lace various products appealing to a given target market together. A pricing strategy wherein a firm charges premium prices and attracts customers less concerned with price than service, assortment, and status. The difference between merchandise costs and retail selling price. The difference between retail price and merchandise cost expressed as a percentage of merchandise cost. The difference between retail price and merchandise cost expressed as a percentage of retail price. A form of cost"oriented pricing in which a retailer sets prices by adding per"unit merchandise costs, operating expenses, and desired profit. A sign used to display a store/s name and.or logo. 7sed by retailers that promote mostly in one or two seasons. )elling goods and services to a broad spectrum of consumers. A positioning approach whereby retailers offer a discount or value"oriented image, a wide and.or deep merchandise assortment, and large store facilities. Divides all retail activities into four functional areas$ merchandising, publicity, store management, and accounting and control. An enormous plan ed shopping center with A"million"plus square feet of retail space, multiple anchor stores, up to several hundred specialty stores, food courts, and entertainment facilities. Aims at price"conscious consumers, who must be members to shop. 9ccurs when items are not paid for by the retailer until they are sold. The retailer can return unsold merchandise. 6owever, it takes title on delivery and is responsible for damages. #quals beginning inventory, purchases, and transportation charges. 1omprised of an integrated and systematic sequence of steps

*andling "rocess! +erchandise Space +erchandising +ergers +icro(+erchandising

+ini$u$("rice La's +odel Stock Approach +odel Stock "lan +onthly "ay$ent redit Account +onthly Sales Inde. +other *en 'ith Branch Store hickens Organi4ation +oti!es +ultidi$ensional Scaling +ultiple(/nit "ricing +ystery Shoppers ,ational Brands ,ational Brands ,B# ,eed(Satisfaction Approach ,egotiated "ricing

from establishing a buying organi!ation through regular re" evaluation. The area where nondisplayed items are kept in stock or inventory. 1onsists of the activities involved in acquiring particular goods and.or services and making them available at the places, times, and prices and in the quantity to enable a retailer to reach its goals. *nvolve the combination of separately owned retail firms. A strategy whereby a firm ad(usts shelf"space allocations to respond to customer and other differences among local markets. )tate regulations preventing retailers from selling certain items for less than the cost plus a fixed percentage to cover overhead. These laws restrict predatory pricing and loss leaders. A method of determining the amount of floor space to carry and display a proper merchandise assortment. The planned composition of fashion goods, which reflects the mix of merchandise available based on expected sales. The model stock plan indicates product lines, colors, and si!e distributions. -equires the consumer to pay for a purchase in equal monthly installments. *nterest is usually charged. A measure of sales seasonality that is calculated by dividing each month/s actual sales by average monthly sales and then multiplying the results by A@@. #xists when headquarters executives oversee and operate the branches. This works well if there are few branches and the buying preferences of branch customers are similar to customers of the main store. The reasons for consumers/ behavior. A statistical technique that allows attitudinal data to be collected for several attributes in a manner that allows data analysis to produce a single overall rating of a retailer 2rather than a profile of individual characteristics3. A policy whereby a retailer offers discounts to customers who buy in quantity. 'eople hired by retailers to pose as customers and observe their operations, from sales presentations to how well displays are maintained to in"home service calls. See Manufacturer 0rands. See Manufacturer 0rands. See <eighborhood 0usiness District. A sales technique based on the principle that each customer has different wants thus, a sales presentation should be geared to the demands of the individual. 9ccurs when a retailer works out prices with individual customers because a unique or complex service is involved

,eigh%orhood Business #istrict 0,B#2

,eigh%orhood Shopping enter ,et Lease ,et "rofit ,et "rofit Before Ta.es ,et "rofit +argin ,et Sales ,et )orth ,e!er(Out List ,iche Retailing ,ondisguised Sur!ey ,ongoods Ser!ices ,onpro%a%ility Sa$ple ,onstore Retailing O%9ecti!e(and(Task +ethod O%9ecti!es O%ser!ation Odd "ricing Off("rice hain

and a one"time price must be agreed upon. An unplanned shopping area that appeals to the convenience" shopping and service needs of a single residential area. The leading retailer is typically a supermarket, a large drugstore, or a variety store and it is situated on the ma(or street2s3 of its residential area. A planned shopping facility with the largest store being a supermarket and.or a drugstore. *t serves B,@@@ to >@,@@@ people who are within A> minutes/ driving time 2usually fewer than A@ minutes3. 1alls for all maintenance costs, such as heating, electricity, insurance, and interior repair, to be paid by the retailer "" which is responsible for their satisfactory quality. #quals gross profit minus retail operating expenses The profit earned after all costs have been deducted. A performance measure based on a retailer/s net profit and net sales. *t is equal to net profit divided by net sales. The revenues received by a retailer during a given time period after deducting customer returns, markdowns, and employee discounts. 1omputed as a retailer/s assets minus its liabilities. 7sed when a retailer plans stock levels for best"sellers. *tems accounting for high sales volume are stocked in a manner that ensures they are always available. #nables retailers to identify customer segments and deploy unique strategies to address the desires of those segments. A technique in which the respondent is told the real purpose of a research study. The area of service retailing in which intangible personal services 2rather than goods3 are offered to consumers "" who experience services rather than possess them. An approach in which stores, products, or customers are chosen by the researcher "" based on (udgment or convenience. 7tili!es strategy mixes that are not store"based to reach consumers and complete transactions. *t occurs via direct marketing, direct selling, and vending machines. A promotional budgeting technique by which a retailer clearly defines its promotional goals and then prepares a budget to satisfy these goals. The long"run and short"run performance targets that a retailer hopes to attain. 5oals can involve sales, profit, satisfaction of publics, and image. A form of research in which present behavior or the results of past behavior are observed and recorded. *t can be human or mechanical. A strategy in which retail prices are set at levels below even" dollar values, such as F@.?G, F?.GE, and FAGG. ,eatures brand"name apparel and accessories, footwear,

linens, fabrics, cosmetics, and.or housewares and sells them at everyday low prices in an efficient, limited"service environment. Off(Retail +arkdo'n The markdown for each item or category of items as a "ercentage percentage of original retail price. One(*undred "ercent The optimum site for a particular store. A location labeled as Location A@@ percent for one firm may be less than optimal for another. A strategy wherein a retailer charges the same price to all One("rice "olicy customers buying an item under similar conditions. -equires a consumer to pay his or her bill in full when it is Open redit Account due. The difference between planned purchases and the purchase commitments already made by a buyer for a given time Open(to(Buy period, often a month. *t represents the amount the buyer has left to spend for that month and is reduced each time a purchase is made. The short"term selling and administrative costs of running a Operating E.penditures business. Operating E.penses The cost of running a retail business. The efficient and effective implementation of the policies and tasks necessary to satisfy a firm/s customers, employees, and Operations +anage$ent management 2and stockholders, if a publicly owned company3. Opinions See Attitudes. <egotiating special low prices for merchandise whose sales have not lived up to expectations, end"of"season goods, items Opportunistic Buying consumers have returned to the manufacturer or another retailer, and closeouts. The marketplace openings that exist because other retailers Opportunities have not yet capitali!ed on them. *nvolve forgoing possible benefits that may occur if a retailer Opportunity osts could make expenditures in another opportunity rather than the one chosen. A form of revolving account that allows partial payments. <o Option redit Account interest is assessed if a person pays a bill in full when it is due. Actively involved with informing and persuading customers, Order(Getting Salesperson and in closing sales. This is a true 4sales4 employee. The period from the date an order is placed by a retailer to the Order Lead Ti$e date merchandise is ready for sale 2received, price"marked, and put on the selling floor3. *nvolved in routine clerical and sales functions, such as setting up displays, placing inventory on the shelves, Order(Taking Salesperson answering simple questions, filling orders, and ringing up sales. A retailer/s commitment to a type of business and to a distinctive role in the marketplace. *t is reflected in the firm/s Organi4ational +ission attitudes to consumers, employees, suppliers, competitors, government, and others.

Organi4ation hart Outshopping Outside Buying Organi4ation O!erstored Trading Area O'ned(Goods Ser!ices "arasite Store "artnership "ercei!ed Risk "ercentage Lease "ercentage(of(Sales +ethod "ercentage 3ariation +ethod

"erfor$ance +easures

"erpetual In!entory Syste$ "erpetual(In!entory /nit( ontrol Syste$

5raphically displays the hierarchal relationships within a firm. %hen a person goes out of his or her hometown to shop. A company or person external to the retailer that is hired to fulfill the buying function, usually on a fee basis. A geographic area with so many stores selling a specific good or service that some retailers will be unable to earn an adequate profit. The area of service retailing in which goods owned by consumers are repaired, improved, or maintained. An outlet that does not create its own traffic and that has no real trading area of its own. An unincorporated retail firm owned by two or more persons, each of whom has a financial interest. The level of risk a consumer believes exists regarding the purchase of a specific good or service from a specific retailer, whether or not that belief is factually correct. )tipulates that rent is related to the retailer/s sales or profits. A promotional budgeting technique whereby a retailer ties its promotion budget to sales revenue. An inventory"level planning method where beginning"of" month planned inventory level during any month differs from planned average monthly stock by only one"half of that month/s variation from estimated average monthly sales. The criteria used to assess retailer effectiveness. They include total sales, average sales per store, sales by goods.service category, sales per square foot, gross margins, gross margin return on investment, operating income, inventory turnover, markdown percentages, employee turnover, financial ratios, and profitability. See 0ook *nventory )ystem. &eeps a running total of the number of units handled by a retailer by ongoing record"keeping entries that ad(ust for sales, returns, transfers to other departments or stores, receipt of shipments, and other transactions. *t can be done manually, use tags processed by computers, or rely on point"of"sale devices. The sum total of an individual/s traits, which make that individual unique. *nvolves oral communication with one or more prospective customers for the purpose of making sales. The area required for employees for changing clothes, lunch and coffee breaks, and rest rooms. *nvolves an actual counting of merchandise. A retailer using the cost method of inventory valuation and relying on a physical inventory system can derive gross profit only as often as it conducts a full physical inventory. 1onsists of a group of architecturally unified commercial

"ersonality "ersonal Selling "ersonnel Space "hysical In!entory Syste$ "lanned Shopping enter

"lanogra$ "+s

"oint of Indifference "oint(of("urchase 0"O"2 #isplay "O" #isplay "ositioning "ost("urchase Beha!ior "o!erty of Ti$e "o'er enter

"o'er Retailer

"redatory "ricing "restige "ricing "re(training "rice Elasticity of #e$and "rice Guarantees "rice Line lassifications "rice Lining 2A3

establishments built on a site that is centrally owned or managed, designed and operated as a unit, based on balanced tenancy, and surrounded by parking facilities. A visual 2graphical3 representation of the space to be allocated to selling, merchandise, personnel, and customers "" as well as to product categories. A manufacturer/s payments for retail salespeople selling that manufacturer/s brand. 'Ms are in addition to the compensation received from the retailer. The geographic breaking point between two cities 2communities3, so that the trading area of each can be determined. At this point, consumers would be indifferent to shopping at either area. An interior display that provides consumers with information, adds to store atmosphere, and serves a substantial promotional role. See 'oint"of"'urchase Display. #nables a retailer to devise its strategy in a way that pro(ects an image relative to its retail category and its competitors, and elicits consumer responses to that image. ,urther purchases or re"evaluation based on a purchase. 9ccurs when greater striving for financial security leads to less rather than more free time since the alternatives competing for consumers/ time rise considerably. A shopping site with 2a3 up to a half"do!en or so category killer stores and a mix of smaller stores or 2b3 several complementary stores speciali!ing in a product category. The status reached by a company that is dominant in some aspect of its strategy. 1onsumers view the company as distinctive enough to become loyal to it and go out of their way to shop there. *nvolves large retailers that seek to destroy competition by selling goods and services at very low prices, thus causing small retailers to go out of business. The practice is restricted by federal and state laws. Assumes consumers will not buy goods and services at prices deemed too low. *t is based on the price"quality association. An indoctrination on the history and policies of the retailer and a (ob orientation on the hours, compensation, chain of command, and (ob duties. -elates to the sensitivity of customers to price changes in terms of the quantities they will buy. 'rotect retailers against possible price declines. *f a retailer cannot sell an item at a given price, the manufacturer pays it the difference between planned retail and actual retail selling prices. #nable retail sales, inventories, and purchases to be analy!ed by retail price category. A practice whereby retailers sell merchandise at a limited

"rice Lining 2=3 "rice(5uality Association "ri$ary usto$er Ser!ices "ri$ary #ata

"ri$ary Trading Area

"ri!ate 0#ealer2 Brands "ro%a%ility 0Rando$2 Sa$ple "ro%le$ A'areness "ro%le$ #efinition "roducti!ity "roduct Life ycle "roduct-Trade$ark &ranchising "rofit(and(Loss 0Inco$e2 State$ent "rototype Stores "sychological "ricing "u%licity

"u%lic Relations "urchase Act

range of price points, with each price point representing a distinct level of quality. 7sed by service retailers providing a wide selection of services. A range of prices is matched to service levels. A concept stating that many consumers feel high prices connote high quality and low prices connote low quality. Those considered basic components of the retail strategy mix they must be provided. 1ollected to address the specific issue or problem under study. These data can be gathered internally or externally though surveys, observations, experiments, and simulation. #ncompasses >@ percent to E@ percent of a store/s customers. *t is the geographic area closest to the store and possesses the highest density of customers to population and the highest per"capita sales. 1ontain names designated by wholesalers or retailers, are more profitable to retailers, are better controlled by retailers, are not sold by competing retailers, are less expensive for consumers, and lead to customer loyalty to retailers. An approach whereby every store, product, or customer has an equal or known chance of being chosen for study. The stage in the decision process where the consumer not only has been aroused by social, commercial, and.or physical stimuli, but also recogni!es the good or service under consideration may solve a problem of shortage or unfulfilled desire. See *ssue Definition. The efficiency with which a retail strategy is carried out. )hows the expected behavior of a good or service over its life. The traditional cycle has four stages$ introduction, growth, maturity, and decline. An arrangement in which franchised dealers acquire the identities of their suppliers by agreeing to sell the latter/s products and.or operate under suppliers/ names. -epresents a summary of a retailer/s revenues and expenses over a particular period of time, usually on a monthly, quarterly, and.or yearly basis. 9ccur with an operations strategy that requires multiple outlets in a chain to conform to relatively uniform construction, layout, and operations standards. -efers to consumer perceptions of retail prices. Any nonpersonal form of public relations whereby messages are transmitted through mass media, the time or space provided by the media is not paid for, and there is no identified commercial sponsor. #ntails any communication fostering a favorable image for a retailer among its publics 2consumers, investors, government, channel members, employees, and the general public3. An exchange of money or a promise to pay for ownership or

"urchase(+oti!ation "roduct Groupings 5R In!entory "lanning 5uick Response 05R2 In!entory "lanning Rack #isplay Rando$ Sa$ple Rationali4ed Retailing Reach Reco$$endations Recruit$ent Reference Groups

Regional Shopping enter

Regression +odel Reilly8s La' of Retail Gra!itation Relationship Retailing Rented(Goods Ser!ices Reorder "oint Resident Buying Office

Retail Audit

Retail Balance

use of a good or service. 'urchase variables include the place of purchase, terms, and availability of merchandise. Appeal to the consumer/s urge to buy a product and the time he or she is willing to spend in shopping. See :uick -esponse *nventory 'lanning. #nables a retailer to reduce the amount of inventory it keeps on hand by ordering more frequently and in lower quantity. An interior display that hangs or presents products neatly. See 'robability )ample. A strategy involving a high degree of centrali!ed management control combined with strict operating procedures for every phase of business. The number of distinct people exposed to a retailer/s ads in a specified period. The stage in the research process during which the alternative approach to best solve a problem or issue is presented. The activity whereby a retailer generates a list of (ob applicants. *nfluence people/s thoughts and.or behavior. They may be classified as aspirational, membership, and dissociative. A large, planned shopping facility appealing to a geographically dispersed market. *t has at least one or two full"si!ed department stores and >@ to A>@ or more smaller retailers. The market for this center is A@@,@@@"plus people, who live or work up to B@ minutes/ driving time from the center. A computer site"selection model that develops a series of mathematical equations showing the association between potential store sales and various independent variables at each location under consideration. The traditional means of trading area delineation that establishes a point of indifference between two cities or communities, so the trading area of each can be determined. #xists when retailers seek to establish and maintain long"term bonds with customers, rather than act as if each sales transaction is a completely new encounter with them. The area of service retailing in which consumers lease and use goods for specified periods of time. The stock level at which new orders must be placed. An inside or outside buying organi!ation that is usually situated in important merchandise centers 2sources of supply3 and provides valuable data and contacts. The systematic examination and evaluation of a firm/s total retailing effort or some specific aspect of it. *ts purpose is to study what a retailer is presently doing, appraise how well the firm is performing, and make recommendations for future actions. -efers to the mix of stores within a district or shopping center.

Retail Infor$ation Syste$

Retailing Retailing oncept Retailing Effecti!eness hecklist Retail Institution

Retail Life ycle Retail +ethod of Accounting

Retail Organi4ation Retail "erfor$ance Inde. Retail "ro$otion

Retail Reductions

Retail Strategy Return on Assets 0ROA2 Return on ,et )orth Re!ol!ing redit Account ROA Ro%inson("at$an Act

Anticipates the information needs of retail managers collects, organi!es, and stores relevant data on a continuous basis and directs the flow of information to the proper retail decision makers. 1onsists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use. 1omprises these four elements$ customer orientation, coordinated effort, value"driven, and goal orientation. 8ets a firm systematically assess its preparedness for the future. -efers to the basic format or structure of a business. *nstitutions can be classified by ownership, store"based retail strategy mix, service versus goods retail strategy mix, and nonstore"based retail strategy mix. A theory asserting that institutions "" like the goods and services they sell "" pass through identifiable life"cycle stages$ innovation, accelerated development, maturity, and decline. A way by which the closing inventory value is determined by calculating the average relationship between the cost and retail values of merchandise available for sale during a period. 6ow a firm structures and assigns tasks 2functions3, policies, resources, authority, responsibilities, and rewards so as to efficiently and effectively satisfy the needs of its target market, employees, and management. #ncompasses five"year trends in revenue growth and profit growth, and a six"year average return on assets. Any communication by a retailer that informs, persuades, and.or reminds the target market about any aspect of that firm. -epresent the difference between beginning inventory plus purchases during the period and sales plus ending inventory. They should encompass anticipated markdowns, employee and other discounts, and stock shortages. The overall plan guiding a retail firm. *t has an influence on the firm/s business activities and its response to market forces, such as competition and the economy. A performance ratio based on a retailer/s net sales, net profit, and total assets. A performance measure based on a retailer/s net profit, net sales, total assets, and net worth. Allows a customer to charge items and be billed monthly on the basis of the outstanding cumulative balance. See -eturn on Assets. 0ars manufacturers and wholesalers from discrimination in price or sales terms in selling to individual retailers if these retailers are purchasing products of 4like quality4 and the effect of such discrimination would be to in(ure competition.

Routine #ecision +aking Safety Stock Sale(Lease%ack Sales &orecasting Sales Opportunity Grid Sales("roducti!ity Ratio

Takes place when a consumer buys out of habit and skips steps in the purchase process. The extra inventory kept on hand to protect against out"of" stock conditions due to unexpected demand and delays in delivery. The practice of retailers building new stores and then selling them to real"estate investors who lease the property back to the retailers on a long"term basis. 8ets a retailer estimate expected future sales for a given time period. -ates the promise of new goods, services, procedures, and.or store outlets across a variety of criteria. A method for assigning floor space on the basis of sales or profit per foot.

Sales "ro$otion #ncompasses the paid marketing communication activities other than advertising, public relations, and personal selling that stimulate consumer purchases and dealer effectiveness. Saturated Trading Area A geographic area having a proper amount of retail facilities to satisfy the needs of its population for a specific good or service, as well as to let retailers prosper. SB# See )econdary 0usiness District. Scenario Analysis 8ets a retailer pro(ect the future by examining the key factors that will affect its long"run performance and then preparing contingency plans based on alternate scenarios. Scra$%led +erchandising 9ccurs when a retailer adds goods and services that are unrelated to each other and to the firm/s original business. Secondary Business #istrict 0SB#2 An unplanned shopping area in a city or town that is usually bounded by the intersection of two ma(or streets. *t has at least a (unior department store, a variety store, and.or some larger specialty stores "" in addition to many smaller stores. Secondary #ata Those that have been gathered for purposes other than addressing the issue or problem currently under study. Secondary Trading Area A geographic area with an added A> percent to => percent of a store/s customers. *t is located outside a primary trading area, and customers are more widely dispersed. Selecti!e #istri%ution Takes place when suppliers sell through a moderate number of retailers. This allows suppliers to have higher sales than in exclusive distribution and lets retailers carry some competing brands.

Self(&ulfill$ent A life"style concept whereby people express their growing sense of uniqueness through goods and services purchases. Selling Against the Brand The practice of retailers carrying manufacturers/ brands and placing high prices on them so rival brands 2such as private"label goods3 can be sold more easily. Selling Space The area set aside for displays of merchandise, interactions between salespeople and customers, demonstrations, and so on. Se$antic #ifferential A disguised or nondisguised survey technique, whereby a respondent is asked to rate one or more retailers on several criteria each criterion is evaluated along a bipolar ad(ective scale. Separate Store Organi4ation Treats each branch as a separate store with its own buying responsibilities. 1ustomer needs are quickly noted, but duplication by managers in the main store and the branches is possible. Ser!ice Blueprint )ystematically lists all the service functions to be performed and the average time expected for each one/s completion. Ser!ice Retailing *nvolves transactions between companies or individuals and final consumers where the consumers do not purchase or acquire ownership of tangible products. *t encompasses rented goods, owned goods, and nongoods. SER35/AL 8ets retailers assess the quality of their service offerings by asking customers to react to a series of statements in five areas of performance$ reliability, responsiveness, assurance, empathy, and tangibles. Si$ulation A type of experiment whereby a computer"based program is used to manipulate the elements of a retail strategy mix rather than test them in a real setting. Single(Source #ata ollection 9ccurs when a research firm develops a sample of consumer households, determines their demographic and life"style backgrounds by surveys, observes television viewing behavior by in"home cable hookups to the firm/s computers, and monitors shopping behavior by having people make purchases in designated stores. Situation Analysis The candid evaluation of the opportunities and potential problems facing a prospective or existing retailer. Social lass An informal ranking of people in a culture based on their income, occupation, education, dwelling, and other factors. Social Responsi%ility 9ccurs when a retailer acts in the best interests of society "" as well as itself. The challenge is to balance corporate citi!enship with a fair level of profits. Sole "roprietorship An unincorporated retail firm owned by one person.

Sorting "rocess *nvolves the retailer/s collecting an assortment of goods and services from various sources, buying them in large quantity, and offering to sell them to consumers in small quantities. Specialog #nables a firm to cater to specific needs of customer segments, emphasi!e a limited number of items, and reduce its catalog production and postage costs. Specialty Store A general merchandise retailer that concentrates on selling one goods or service line. Standardi4ation A strategy of directly applying a domestic market retail strategy to foreign markets. Standard +erchandise lassification A detailed list of common merchandise"reporting categories devised by the <ational -etail ,ederation. *ts use lets retailers contrast their financial data with industry averages. Sti$ulus A cue 2social or commercial3 or a drive 2physical3 meant to motivate or arouse a person to act. Stock(to(Sales +ethod An inventory"level planning technique wherein a retailer wants to maintain a specified ratio of goods"on"hand to sales. Stock Turno!er -epresents the number of times during a specific period, usually one year, that the average inventory on hand is sold. )tock turnover can be computed in units or dollars 2at retail or cost3. Stora%ility "roduct Groupings 1lassify and display products needing special handling and storage together. Storefront The total physical exterior of a store. *t includes the marquee, entrances, windows, lighting, and construction materials. Store Loyalty #xists when a consumer regularly patroni!es a particular retailer 2store or nonstore3 that he or she knows, likes, and trusts. Store +aintenance #ncompasses all the activities involved in managing a retailer/s physical facilities. Straight Lease -equires the retailer to pay a fixed dollar amount per month over the life of a lease. *t is the simplest, most direct leasing arrangement. Straight 0Gridiron2 Traffic &lo' 'resents displays and aisles in a rectangular or gridiron pattern. Strategic "rofit +odel #xpresses the mathematical relationship among net profit margin, asset turnover, and financial leverage. *t can be used in planning or controlling a retailer/s assets.

Strategy +i. A firm/s particular combination of these factors$ store location, operating procedures, goods.services offered, pricing tactics, store atmosphere and customer services, and promotional methods. String An unplanned shopping area comprising a group of retail stores, often with similar or compatible product lines, located along a street or highway. Supercenter A special type of combination store that blends an economy supermarket with a discount department store. Super$arket A self"service food store with grocery, meat, and produce departments and minimum annual sales of F= million. This retail category includes conventional supermarkets, food"based superstores, combination stores, box 2limited"line3 stores, and warehouse stores. Super!ision The manner of providing a (ob environment that encourages employee accomplishment. Sur!ey A research technique whereby information is systematically gathered from respondents by communicating with them. Sur!ey of Buying "o'er -eports current demographic data on metropolitan areas, cities, and states. *t also provides such information as total annual retail sales by area, annual retail sales for specific product categories, annual effective buying income, and five"year population and retail sales pro(ections. T Tactics Actions that encompass a retailer/s daily and short"term operations. Tall Organi4ation A format with several levels of managers. *t leads to close supervision and fewer employees reporting to each manager. Target +arket The customer group that a retailer seeks to attract and satisfy. Ter$s of Occupancy *nclude ownership versus leasing, the type of lease, operations and maintenance costs, taxes, !oning restrictions, and voluntary regulations. The$e(Setting #isplay An interior display that depicts a product offering in a thematic manner and lets a retailer portray a specific atmosphere or mood. Theory : The traditional view of motivation that assumes employees must be closely supervised and controlled. *t has been applied to lower"level retail positions. Theory Y A more modern view of motivation that assumes workers can be self" managers and be given authority, motivation is social and psychological, and management is decentrali!ed and participatory. *t applies to all levels of retail personnel.

Theory ; Advocates more employee involvement in defining their (obs and sharing decision making with management. *t adapts elements from Theory H and 6er!berg/s theory. Threats #nvironmental and.or marketplace factors that can adversely affect retailers if they do not react to them 2and sometimes, even if they do3. Top(#o'n Space +anage$ent Approach #xists when a retailer starts with its total available store space 2by store and for the overall firm, if a chain3, divides the space into categories, and then works on in"store product layouts. Total Retail E.perience 1onsists of all the elements in a retail offering that encourage or inhibit consumers during their contact with a given retailer. Trading Area A geographic area containing the customers of a particular firm or group of firms for specific goods or services. Trading(Area O!erlap 9ccurs when the trading areas of stores in different locations encroach upon one another. *n the overlap area, the same customers are served by both stores. Traditional #epart$ent Store A department store where merchandise quality ranges from average to quite good, pricing is moderate to above average, and customer service levels of help range from medium to high. Traditional 7o% #escription 1ontains each position/s title, supervisory relationships 2superior and subordinate3, committee assignments, and the specific roles and tasks to be performed on an ongoing basis. Training "rogra$s 7sed to teach new 2and existing3 personnel how best to perform their (obs or how to improve themselves. 7 /n%undled "ricing *nvolves a retailer/s charging separate prices for each service offered. /ncontrolla%le 3aria%les Those aspects of business to which the retailer must adapt 2such as competition, the economy, and laws3. /nderstored Trading Area A geographic area having too few stores selling a specific good or service to satisfy the needs of its population. /nit ontrol -elates to quantities of merchandise a retailer handles during a stated time period. /nit "ricing A practice required by many states, whereby retailers 2mostly food stores3 must express price in terms of both the total price of an item and its price per unit of measure.

/ni!ersal "roduct ode 0/" 2 A classification for coding data onto products by a series of thick and thin vertical lines. *t lets retailers record data instantaneously as to the model number, si!e, color, and other factors when an item is sold, and to transmit the data to a computer monitoring unit sales, inventory levels, and other factors. The 7'1 is not readable by humans. /nplanned Business #istrict A type of retail location where two or more stores situate together 2or in close proximity3 in such a way that the total arrangement or mix of stores in the district is not the result of prior long"range planning. /" See 7niversal 'roduct 1ode. /sage Rate -efers to average sales per day, in units, of merchandise. + 3alue #eli!ery Syste$ 1omprises all of the activities needed to develop, produce, deliver, and sell and service particular goods and services. 3alue "ricing 9ccurs when prices are set on the basis of fair value for both the service provider and the consumer. 3aria%le +arkup "olicy A strategy whereby a retailer purposely varies markups by merchandise category. 3aria%le "ricing A pricing strategy wherein a retailer alters its prices to coincide with fluctuations in costs or consumer demand. 3ariety Store A retail store that handles a wide assortment of inexpensive and popularly priced goods and services, such as stationery, gift items, women/s accessories, health and beauty aids, light hardware, toys, housewares, confectionery items, and shoe repair. 3ending +achine A retailing format that involves the coin" or card"operated dispensing of goods and services. *t eliminates the use of sales personnel and allows around"the" clock sales. 3ertical ooperati!e(Ad!ertising Agree$ent #nables a manufacturer and a retailer or a wholesaler and a retailer to share an ad. 3ertical +arketing Syste$ 1onsists of all the levels of independently owned businesses along a channel of distribution. 5oods and services are normally distributed through one of three types of systems$ independent, partially integrated, and fully integrated. 3ertical "rice &i.ing 9ccurs when manufacturers or wholesalers are able to control the retail prices of their goods and services. 3ertical Retail Audit *nvolves analy!ing "" in depth "" a retail firm/s performance in one area of its strategy mix or operations.

3ideo atalog A retail catalog that appears on a 1D"-9M disk and is viewed on a computer monitor. 3ideo 1iosk A freestanding, interactive computer terminal that displays products and related information on a video screen it often uses a touchscreen for people to make selections. % )ant Book 0)ant Slip2 A notebook or slip in which store employees record consumer requests for unstocked or out"of"stock merchandise. )arehouse Store A food"based discounter offering a moderate number of food items in a no"frills setting. )eeks8 Supply +ethod An inventory"level planning method wherein beginning inventory is equal to several weeks/ expected sales. *t assumes the inventory carried is in direct proportion to sales. )eighted Application Blank A form whereby criteria that best correlate with (ob success are given more weight than others. After weighted scores are given to all (ob applicants, a minimum total score can be used as a cutoff point for hiring. )heel of Retailing A theory stating that retail innovators often first appear as low"price operators with a low"cost structure and low profit"margin requirements. 9ver time, these innovators upgrade the products they carry and improve their facilities and customer services. They then become vulnerable to new discounters with lower cost structures. )idth of Assort$ent -efers to the number of distinct goods.service categories with which a retailer is involved. )ord(of(+outh o$$unication 9ccurs when one consumer talks to others. )orld )ide )e% 0)))2 9ne way of assessing information on the *nternet, whereby people work with easy"to"use %eb addresses 2sites3 and pages. 7sers see words, colorful charts, pictures, and video, and hear audio "" turning their '1s into interactive multimedia centers. ))) See %orld %ide %eb. H Yield +anage$ent "ricing 7sed when a service firm determines the combination of prices that yield the highest level of revenues for a given time period. ;

;ero(Based Budgeting The practice followed when a firm starts each new budget from scratch and outlines the expenditures needed to reach that period/s goals. All costs must be (ustified each time a budget is done.