RETAIL GLOSSARY

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Retail Glossary

ABC Analysis - an analysis that rank-orders SKUs by some profitability measure to determine which items should never be out-of-stock, which items should be allowed to be out-of- stock occasionally, and which items should be deleted from the stock selection. Abilities - the aptitude and skills of an employee. Accessibility - the degree to which customers can easily get into and out of a shopping center. Accordion Theory - a cyclical theory of retailer evolution cycles suggesting that changes in retail institutions are explained in terms of depth versus breadth of assortment. Retail institutions cycle from high depth/low breadth to being low depth/high breadth stores, and back again. Accounts Payable - amount of money owed to vendors, primarily for merchandise inventory. Accounts Receivable - amount of money due to the retailer from selling merchandise on credit. Accrued Liabilities - liabilities that accumulate daily, but are only paid at the end of a period. Acquisition - growth strategy in which one firm acquires another firm usually resulting in a merger. (See also, leveraged buyout). Actual Selling Cost - Relationship (expressed as a percentage) of salary to net sales; determined by dividing net sales into gross salary for any respective period. Addition Markup - an increase in retail price after and in addition to original markup. Additionally Markup Cancellation - the percentage by which the retail price is lowered after a markup is taken. Additional Markup Percentage - the addition of a further markup to the original markup as a percent of net sales. Advertising - Paid communications delivered to customers through nonpersonal mass media vehicles such as newspapers, television, radio, and direct mail. Advertising Frequency - the number of times the typical potential customer is exposed to an ad. Advertising Manager - a retail manager that manages advertising activities such determining the advertising budget, allocating the budget, developing ads, selecting media, and monitoring effectiveness. Advertising Reach - the percent of customers in the target market exposed at least once to an ad. Affordable Promotional Budgeting - budgeting method by which a retailer first sets a budget from every element of the retail mix except promotion and then funds the left over to a promotional budget. Allowances - deductions from the sale price to a customer in lieu of returning unsatisfactory merchandise. Alteration Costs - expenses incurred to change the appearance or fit, assemble, or repair merchandise.

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Analog Approach - a method of trade area analysis that is also known as the “similar store” or “mapping” approach. The analysis is divided into four steps: 1) describing the current trade areas by using a technique known as customer spotting. 2) plotting the customer on a map. 3) defining the primary, secondary, and tertiary area zones; and 4) matching the characteristics of stores in the trade areas with the potential new store to estimate its sales potential. Anticipation Discount - discount offered in addition to the cash discount or dating, if an invoice is paid before the end of the cash discount period. Anti-competitive Leasing Arrangement - leases that limit the type and amount of competition a particular retailer faces within a trading area. Anti-trust legislation - a set of laws directed at preventing unreasonable “restraint of trade” and “unfair trade practices” to foster a competitive environment. See Restraint of Trade. Application Blank - information on an applicant’s education, employment experience, hobbies and references. Asset Turnover - net sales divided by total assets. Assets - economic resources with expected economic benefit in the future that are owned or controlled by an enterprise as a result of past transactions or events. Assortment - the number of SKUs within a merchandise category. Atmosphere - the physical characteristics of the store such as architecture, layout, signs and displays, color, lighting, temperature, noise, and smells creating an image in the customer’s mind. Automatic Reordering System - system for ordering staple merchandise using a predetermined minimum quantity of goods in stock is reached. An automatic reorder can be generated by a computer on the basis of a perpetual inventory system and reorder point calculations. Average BOM Stock-to-Sales Ratio - the number of months in the period divided by planned inventory turnover for the periods. Average Sales - net sales divided by total number of sales transactions. Average Inventory - the sum of inventory on hand at several periods in time divided by the number of periods. Backward Integration - a form of vertical integration in which a retailer owns some or all of its suppliers. Bait and Switch - an unlawful deceptive practice that lures customers into a store by advertising a product at lower than usual prices (the bait), then inducing the customers to switch to a higher priced model (the switch). Balance Sheet - summary of a retailer’s financial resources and claims against the resource at a particular date. Indicates the relationship between assets, liabilities and owners equity. Bank Cards - credit cards issued by banks such as Visa and Mastercard. Bar Code - See UPC (Universal Product Code). Barriers to Entry - conditions in a retail Market that make it difficult for firms to enter the retail market.

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4 . the amount of order. symbol. Basic Stock List .the activities customers undertake when purchasing a good or service. item description. number of unit on hand and order.. size and type of parking lot.the descriptive and record-keeping function of an inventory control system including the stock number. Brand . Blue Laws . Usually contains gondolas in grocery and discount stores and freestanding fixtures for soft goods. signs. the inventory turnover. or trademark. Most states no longer have Blue Laws.Base Salary . the quantity that should be ordered for each SKU.additional compensation awarded periodically based on a subjective evaluation of the employee’s performance.an index indicating the percentage of total U. as their career progresses.salary before commission or bonus is added.legal restriction describing the type of building. etc. the availability of inventory. that can be used at a particular location. Buyer’s Report .condition arising when customers’ price sensitivity increases because they cannot perceive special benefits from the product. Basic Merchandise .an inventory management method used to determine the beginning-of-month (BOM) inventory by considering both the forecasted sales for the month and a safety stock.the location between two towns where customers on one side of the location patronize one town.a store design that placing all departments on the “main aisle” by drawing customers through the store in a series of major and minor loops. Building Codes . Buying Power Index (BPI) . and sales for the previous periods. the forecasted sales.running out of stock on particular sizes. while those on the other side patronize the other town. Career Path . Benefits/Price Effect . Cash . and most importantly. Book Inventory .specific needs satisfied when a customer buys a product.the set of positions to which management employees are promoted within a particular organization. retail sales occurring in a specific geographic area.S.money on hand. Benefits .See Staple Merchandise. Basic Stock Method . Bonuses . Buying Power . logo. Breaking Sizes . Boutique Layout .a distinctive grouping of products identified by corporate name. Used to forecast demand for new stores and to evaluate the performance of existing stores. Also known as a loop.these laws were primarily designed to prohibit retailers from operating their stores seven days a week and to control operating hours.information on the velocity of sales. Bulk of Stock .See Retail Inventory Method.store area in which the total assortment of merchandise is placed. design. Breaking Point . Buying Behavior .the customer’s financial resources available for making purchases.

reductions in the invoice cost for paying the invoice prior to the end of the discount period.a center of retailing activity such as a town or city. Centralized Buying . Central Place .000. Catalog Showroom . Category . Chain Discount .traditional downtown area of a city or town. Centralization .See Retail Chain. such as pants as opposed to jackets or suits.” Cellar-Kefauver Anti-Merger Act (1950) . Typically specializes in hard goods such as housewares.a fashion that has both a high level and a long duration of acceptance.See Distribution Channel.an assortment of items (SKUs) that the customer sees as reasonable substitutes for each other.as used in Christaller’s Central Place Theory -. Also known as Category Specialist. Checking . Classification Dominance .a number of different discounts taken sequentially from the suggested retail price. Classification . Christaller’s Central Place Theory .a group of items of SKUs for the same type of merchandise. Classic .the degree to which the authority for making the retailing decisions is delegated to corporate managers rather then to geographically dispersed regional. Classification Merchandising . supplied by different vendors.the process of going through the goods upon receipt to make sure it arrived undamaged and that the merchandise received matches the merchandise ordered.subdivisions of a SMSA with an average population of 4. and store management.a situation in which a retailer has all purchase decisions made at one location. district.Cash Discounts .discount retailers offering a complete assortment in a category and thus dominate a category from the customer’s perspective. Category Killers . Central Market .divisions of departments into related types of merchandise for reporting and control 5 . typically the firm’s headquarters.Latin term for “let the buyer beware. Chain . Channel of Distribution .an assortment so broad that customers should be able to satisfy all their consumption needs for a particular category by visiting the retailer.See Central Place.a retailer using a showroom displaying merchandise combined with an adjacent warehouse.an act passed to amend section 7 of the Clayton Act by clarifying when asset or stock acquisitions are illegal. Census Tracts .See Market. Caveat Emptor . Central Business District (CBD) .

Cocooning . health and insurance benefits.a vendor offer of money or gifts to a buyer for the purpose of influencing purchasing decisions.laws based on pervious court decisions.an act passed as a response to the deficiencies of the Sherman Act. home centers and other convenience and shopping goods stores.compensation based on a fixed formula.monetary payments including salary. and a retirement plan. such as percentage of sales.specific goals for a communication program related to the effects of the communication program on the customer’s decision making process.an approach for setting promotion budgets so that the retailer’s share of promotion expenses is equal to its share of market. and videotape rentals. specialty department store. Communication Objectives . Compensation .000 and 100. Computerized Checkout . Close-Out Store . and exclusive dealing contracts that have the effect of limiting free trade. safe. Common Law .agreement passing title of goods to the consumer conditional on full payment.a term that describes a behavioral pattern of consumers who increasingly turn to the nice. Combination Stores . commission. these decisions become part of the common law.rules of behavior which society generally determines as right or wrong. COD (Collect of Delivery) . Conditional Sales Agreement .shopping center that includes a discount store. Commercial Bribery . Competitive-Oriented Pricing .food based retailers between 30. familiar environment of their homes to spend their limited leisure time. and bonus such as paid vacations.the type of stock most frequently issued by corporations. tying arrangements. Competitive Parity Method . Comparison Shopping . pricing. When judges render a decision on a case.000 square feet in size with over 25 percent of their sales from nonfood merchandise such a flowers. 6 . kitchen utensils. Commissions . Common Stock .purposes. visual display.a pricing approach in which a retailer uses competitors’ prices as guides rather than demand or cost considerations. photo developing. super drug store. Clayton Act (1914) . and service to their offering. Community Center .payment for a product is collected at the time of delivery. health and beauty aids. that specifically prohibits price discrimination.a market research method by which retailers shop at competitive stores comparing the merchandise. Code of Ethics .see Point-of-Sale Terminals (POS). Owners of common stock usually have voting rights in the retail corporation. prescription drugs. and provides for damages to parties injured as a result of violations of the act.a retailer offering merchandise obtained through retail liquidations and bankruptcy proceedings.

shopping center that typically includes stores like convenience market. Cooperative Buying . storage. Conflict of Interest .sales promotional activities in which customers compete for rewards.items not paid for by retailer until they are sole. Contract Distribution Service Companies . and independent organizations designed to protect individuals from practices that infringe upon their rights as consumers.a self-service food store offering groceries. Convenience Stores .gross margin less any expense that can be directly assigned to the merchandise. 7 . including transportation to the contract company’s distribution center.000 square feet. however.firms that perform all the distribution functions for retailers or vendors. Consideration Set . Corporation .group of independent retailers who work together to make large purchases from a single supplier.stores providing a limited assortment of merchandise at a convenient location and time in neighborhood store between 3. and transportation to retailers. Consumer Goods Pricing Act (1975) . The retailer can return unsold merchandise.circumstance when a decision maker’s personal interest influences or has the potential to influence his or her professional decision.000 square feet.the set of alternatives the customer evaluates when making a merchandise selection. Copy . Conjoint Analysis . a dry cleaner.a retail firm that is formally incorporated under state law that is a different legal entity than stockholders and employees. or a liquor store. and produce with annual sales over $2 million and size under 20. Cost Complement . retailer does not take title until final sale made.statute repealing all resale price maintenance laws and making it possible for retailers to sell products below suggested retail prices. business. Conventional Supermarket .Conditions of Sales .the activities of government. Converse’s Breaking Point Model . merchandise processing.those products that the consumer buys from the most convenient location and is not willing to spend effort evaluation prior to purchase. Contests .survey research tool that has become popular in recent years for evaluating the relative importance of product attributes. Convenience Products .000 and 8.the percentage of net sales represented by the cost of goods sold. Cooperative (co-op) Advertising .See Breaking Point. meat. Convenience Center . Contribution Margin .a program undertaken by a vendor in which a vendor agrees to pay all or part of a promotion for their products.the text in a advertisement.See Terms of Sale. Consignment Purchase . Consumerism .

DAGMAR (defining advertising goals for measured advertising results) . When a physical inventory is conducted.sales associates in one department attempting to sell complementary merchandise from other departments to their customers. the quantity in stock is counted.any additional price reduction given to the customer.method for determining the retail price by adding a fixed percentage to the cost of the merchandise. Counterfeit Merchandise .inventory that adheres to a normal receipt-sale cycle. and post purchase evaluation. Customer Service Departments .the cumulative markup multiplied by 100 percent minus cumulative markup percentage. Customer Service . Cumulative Quality Discounts . Current Assets .debts that are expected to be paid in less than one year.goods that are made and sold without permission of the owner of a trademark.the set of retail activities that increase the value customers receive when they shop and purchase merchandise. and the total inventory value at cost is calculated. a price tag or merchandise container. Current Ration . Purchases are made with payment due in the future.discounts earned when retailers by purchasing certain quantities over a specified period of time.discount on the price of specific items when they are purchased at the stores. evaluation and choice of alternatives. Coupons .retailers record the cost of every item on an accounting sheet or include a cost code. Cost Oriented Method .Cost Method of Accounting .a technique used in trade area analysis that “spots” or locates the residence of the customers for a store or shopping center. etc. Cross Selling .departments in retail organizations used for handling customer inquiries and complaints. Credit . Customer Buying Process . information search.cash and other assets that can normally be converted into cash within one year. Customer Spotting .the amount of merchandise that a customer’s return because it is damaged.the amount of money that is placed at consumer’s disposal by a retailer or financial or other institution. the cost of each item must be determined. doesn’t fit. Customer Allowances . Customer Returns . Cost Multiplier .a method for setting advertising goals based on 8 . Indicates the firm’s ability to meet current debt with current assets. Also know as cost-plus pricing. Current Liabilities . Stages include need recognition. See Retail Inventory Method.the stages a customer goes through in purchasing a good or service. The total retail price minus cost divided by retail price.the average percentage markup for the period. Cycle Stock Merchandise . Cumulative Markup .current assets divided by current liabilities. purchase.

sex. Dialectic Process . and income. Departmentalization . or other unique features act as a magnet for customers.a form of nonstore retailing in which customers are exposed to merchandise through an impersonal medium and then purchase the merchandise by telephone or mail.an ethical issue in which it is considered unethical for a retail employee to disclose proprietary information to anyone outside the firm any confidential information relating about the firm’s business for non business activities.reductions in the original retail price granted to store employees as special benefits. Department Stores . Direct Product Profitability (DPP) . pricing. Deffered Billing .an evolutionary theory based on the premise that retail institutions evolve. Difficult Comparison Effect . 9 .condition arising when customers’ price sensitivity increases because it is difficult to make comparisons between existing brands. distribution. Also known as Residual Income.to pay. sales.communication objectives. presentation. and the cost of carrying the assets.refers to the dates in which discounts can be taken and the full invoice amount is due. and organized into separate departments for displaying merchandise.department in stores in which demand for their products or services are created before customers get to their destination. Debit Card .factors commonly used to define market segments such as age.an organizational design in which employees are grouped together into department performing specific activities to achieve the operating efficiencies through specialization.a card that resembles a credit card but allows the retailer to automatically subtract payments from a customer’s checking account at the time of sale.retailers carrying a wide variety and deep assortment.forecasted demand without the influence of seasonality. Deceptive Advertising . DPP is equal to the per-unit gross margin less all variable costs associated with the merchandise such as procurement.a retail store where the merchandise. with no interest charge. Direct Marketing . Discount-Anchored Center . selection. Deseasonalized Demand .a shopping center that contains one or more discount stores and smaller retail tenants. The theory suggests that new retail formats emerge by adopting characteristics from other forms of retailers in much the same way that a child is the product of the pooled genes of two very different parents. Discounts . offering considerable customer services. Disclosure of Confidential Information . Dating .merchandise that represents a group of classifications the consumer views as being complementary. Demand-Oriented Method .any advertisement that contains a false statement about or misrepresents a product or service.the profit associated with each category or unit of merchandise. Demographics . Department .enables customers to buy merchandise and not pay for it for several months. Demand/Destination Areas . Destination Store .setting prices based on what the customers would expect – or be willing -.

Electronic Data Interchange (EDI) .S.See Retail Distribution. Economy-Priced Products Index (EPP) . limited service.a retail promotion that allows the customer double the face value of the coupon. Distribution . Direct Selling .a strategic investment opportunity involving an entirely new retail format directed toward a market segment that is not presently being served.a general merchandise retailer offering a wide variety of merchandise.a set of firms that facilitates the movement of products from the point of production to the point of sale to the ultimate consumer.Display Stock . Diversionary Pricing .Stage in the buying process where the customer compares the benefits offered by alternatives.firms that buy unwanted merchandise from retailers and manufacturers and resell the merchandise to other retailers. Economic Order Quantity .stock placed on various display fixtures that customers can directly examine. Diverters . Ethics . Double Coupon .a form of nonstore retailing that involves selling merchandise through salespeople who contact the consumers directly or by telephone at home or place of work.an index indicating the percentage of U. Dual distribution . the lowest prices on all items everyday rather than periodically advertising price promotions on a few items. retail sales in a geographic area for economically priced products.discount period starts at the end of the month in which the invoice is dated (except when the invoice is dated the 25th or later). Evaluation of Alternatives .display fixtures located at the end of an aisle. Everyday-Low-Price Strategy .a system or code of conduct based on universal moral duties and obligations which indicate how one should behave.the computer-to-computer exchange of business documents from retailer to vendor and back.restrictions a manufacturer or wholesaler places on a retailer in terms of carrying only its products and no competing vendors’ products. Distribution Channel .the order quantity that minimizes the total costs of processing orders and holding inventory.a pricing strategy that attempts to have. Diversification . 10 . End Caps . on average. and lower prices. Some of these channels may bypass present retailers. Exclusive Dealing Agreements . End of Month Dating (EOM) . Discount Stores .when a manufacturer or wholesaler use multiple channels of distribution to reach ultimate consumer.practice sometimes used by retailers in which low price is stated for one or a few goods or services (emphasized in promotion) to give the illusion that all of a retailer’s prices are low.

discount offered by a vendor in which the retailer receives an extra amount of time to pay the invoice and still take the cash discount.off-price retailers that are owned by manufacturers.computer programs incorporating knowledge of experts in a particular field. Extended Problem Solving .rewards provided to employees by either their manager or the firm such as money.the qualities or characteristics of a product that provide benefits to customers. Extra Dating .forecasting technique in which sales in previous time periods are weighted to develop a forecast for future periods.policy in which no other retailer in the territory is allowed to sell a particular brand.a type of specialty shopping center that contains a higher quality department store and small boutiques.financial measure based on the relationship between the retailer’s liabilities and owners’ equity indicating financial stability of the firm. Federal Trade Commission Act (1914) . Financial Leverage . Extrinsic Rewards . Fashion Merchandise . Fashion-Oriented Center . Fad .expenses that remain consistent for a given period of time regardless of the sales volume. Expenses . Executive Training Programs (ETPs) .guarantee supplied by either the retailer or the manufacturer that details the terms of the warranty in simple and easily understood language so customers know what is and what is not covered by the warranty.Exclusive Geographical Territories . Fair Trade Laws . and recognition. Fashion-Oriented Shopping Center .congressional act creating the Federal Trade Commission (FTC) and giving the Commission the power to enforce federal trade laws. Fixed Assets . Express Warranty . Expert Systems . Systems are used to aid in decision making and problem solving.costs incurred in the normal course of doing business to generate revenues. 11 . promotion.A buying process in which customers spend considerable time at each stage because the decision is important and they have limited knowledge about alternatives. such as a season.shopping center usually containing a higher quality department store as well as other smaller boutiques. Factory Outlet Stores . managers.a particular style of merchandise that has a relatively short and unpredictable selling life.training programs for supervisors.product with a very short life cycle.assets requiring more than a year to convert to cash. and executives. Features .See Vertical Pricing Fixing.a market research method in which a variable is manipulated under controlled conditions. Experiment . Exponential Smoothing . Fixed Expenses .

See Tertiary Trade Zone. Functional Needs . Full-Line Forcing . Gondola .a marketing research technique in which a small group of respondents are interviewed by a moderator using a loosely structured format.See Advertising Frequency. Functional Discounts . 12 . unadvertised merchandise found mainly in drug. and retailers.allowing the buyer additional time to take advantage of the cash discount or to pay the net amount of the invoice. Full Warranty . Free-Form .a store design used primarily in smaller specialty stores or within the boutiques of larger stores that arranges fixtures and aisles in an asymmetrical pattern. Future Dating .a term of sale which designating that the shipper owns the merchandise until it is delivered to the retailer and is therefore responsible for transportation and any damage claims.guarantee provided by either the retailer or manufacturer to repair or replace merchandise without charge and within a reasonable time in the event of a defect. FOB Destination . Gentrification . Functional Product Grouping .a pricing strategy that allows consumers to bargain over selling prices.a term of sales that designates that the retailer takes ownership of the merchandise at the point of origin and is therefore responsible for transportation and any damage claims. housing developments. Frequency . Focus Group . grocery.See Trade Discounts.old buildings torn down or restored with new offices.needs satisfied by a product or service that are directly related to the performance of the offering.legal price discrimination based on actions done in good faith to meet competitive pricing. Fringe Trade Area .a location for a retailer that is not located adjacent to other retailers.a form of vertical integration in which a manufacturer owns wholesalers and/or retailers.suppliers requiring a retailer to carry the supplier’s full line of products if the retailer wants to carry any part of that line. Graduate Lease . Forward Integration . which allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor. FOB Origin .S. Franchising . registered trademark and is made by a foreign manufacturer.categorizing and displaying merchandise by common end uses.lease including precise rent increases over a specified period of time. Generics . and discount stores. Freestanding Retailer .a gondola is an island type of self-service counter with tiers of shelves back-to-back. Good Faith Defense .Flexible Pricing . Gray Market Good .unbranded.a contractual agreement between a franchisor and a franchisee.merchandise that possesses a valid U.

Greeter . Hand Making . Gross Leasable Area (GLA) . ink stamps. Habitual Decision-Making . Group Boycott . Human Resource Management . tag or ticket the merchandise. Gross Sales .the difference between the price that the customer pays for merchandise and the cost of the merchandise (the price the retailer paid the supplier of the merchandise).a term used in trade area analysis to estimate the “supply” of stores that can theoretically be supported or warranted by the population residing in the area. Home Improvement Center .a very large retail store offering low prices that combines a discount store and a superstore food retailer in one warehouse-like building. Income Statement .cash discounts. package.agreements between retailers who are in direct competition with each other to have the same prices.an unplanned purchase by a customer.requires notifications and waiting times of large corporations that are contemplating the acquisition of other business. Hypermarket . typically used by grocery stores.a summary of the financial performance of a firm for a period of time. Also known as Routine Decision Making. Impulse Purchase . Gross Margin .the total dollar revenues received from sales of merchandise & services during a stated period of time from which customer returns and allowances have not bee deducted.a category specialist combining the traditional hardware store and lumber yard. label. Horizontal Price Fixing .shopping center located in a place of historical interest.but is imported into the United States without permission of the U.a store design layout.compensation to employees based on their productivity. trademark owner. 13 .a trade area analysis model used to determine the probability that a customer residing in a particular area will shop at a particular store or shopping center. Grid .a guarantee that accompanies all merchandise sold by a retailer assuring customers that the merchandise is “fit” for the ordinary purposes for which such goods are used.management of a retailer’s employees. Hart-Scott-Rodino Anti-Trust Improvements Act (1976) . More specifically.S. in which merchandise is displayed on long gondolas in aisles with a repetitive pattern.A type of buying process in which customers routinize their purchase decision and do not go through the stages of the buying process but rely on specific rules. and pens to directly mark.use of grease pencils.a person who greets customers when entering the store and provides information and/or assistance.a concerted refusal by either retailers or vendors to deal with a particular business.cost of goods sold (=maintained markup) + alteration cost . Incentive Compensation Plan . Historical Centers . gross margin = net sales . Huff’s Model . Implied Warranty of Merchantability .

the activities that the employee needs to perform and the firm’s performance expectations expresses in quantitative terms.bonds that offer investors a higher risk/higher yield investment than conventional bonds.. e.advertisement that emphasize the retailer’s name and positioning rather than specific merchandise or prices. Intertype Competition . shipping. Junk Bonds .a method of deferred payment in which merchandise is held by the store for the customer until it is completely paid for.Independent . Ingress/Egress . handling. Inventory . Safeway versus Wal-Mart Intratype Competition .competition between different types of retailers.g.goods or merchandise available for resale. Invoice Cost .the amount of time between recognition that an order needs to be placed and when it arrives in the store and 14 . Information Search .See Shrinkage.the amount charged by a financial institution to borrow money.a retailer that owns only one retail store. Initial Markup . In-house Credit System .g. Inventory Shrinkage . It is used to evaluate how effectively managers utilize their investment in inventory. Lay-a-way .difference between the cost and the retail selling price originally placed on the merchandise. Inventory Management . and other related costs in check. e.a stage in the buying process in which a customer seeks additional information to satisfy a need.See Proprietary Store Credit and System. Job Description . Kroger versus Safeway.the actual amount due for the merchandise after both trade and quantity discounts are taken.process of acquiring and maintaining a proper assortment of merchandise while keeping ordering.plan enabling consumers to pay their total purchase price (less down payment) in equal installment payments over a specified time period.competition between the same type of retailers.unauthorized use of a registered trademark.rewards employees get from doing their job. Installment-Credit Plan .. Keystone Method . Inventory Turnover .ease of entering and exiting the parking lot of the site.net sales divided by average retail inventory.marking prices only on shelves or signs and not on individual items. Institutional Advertisement . Interest . Intrinsic Rewards .method of setting retail prices in which retailers simply double the cost of the merchandise to obtain the original retail selling price. Lead Time . Item Price Removal . Infringement .

Loss Leader . merger. Lines of Authority and Responsibility . Long-term Liabilities . 15 .the manner in which an individual consumer or family (household) live and spend their time and money.the amount of markup that the retailer wishes to be maintained on a particular category of merchandise. Liabilities .See Retail Distribution. Limited Problem Solving .products that are produced and controlled by and carry the name of a manufacturer.a type of guarantee in which any limitations on the warranty must be stated conspicuously so that customers are not misled. Limited Warranty . Maintained Markup . Leader Pricing . Manufacturer Brands . The outside party either pays fixed rent or a percentage of sales to the retailer for the space.a financial transaction in which a buyer. The licensee either manufactures or contracts with a manufacturer to produce the licensed product and pays a royalty to the licensor. Logistics .a pricing strategy in which certain items are priced lower than normal to increase the traffic flow of customers. Life-Style .See Direct Mail Catalog Retailer. either the firms management or an outside individual or group acquires a company by borrowing money form a financial institution or by issuing junk bonds using its assets as collateral. present. or future benefits.cost of goods sold.Organizational principle that employees should be given the authority to accomplish whatever responsibilities that have been assigned to them. Leased Department .See Boutique Layout.item priced near or below cost to attract customer traffic into the store.obligations that the retailer commits to pay after at least one year. Licensed Brands .is ready for sale. (See also. and/or increase the sale of complementary products.those brands in which the owner of a well-known name licensor enters a contractual arrangement with a licensee that may be a retailer a or third party.a popular method for linking the goals of the firm to goals for each employee and providing information to employees about their role. Also known as National Brands. Mail-Order Retailers . Life-Style Merchandising .a buying process that occurs when customers do not need to spend a great deal time in each of the steps because of their knowledge and prior experience. Management by Objectives .development of merchandise lines bases on consumer living patterns. acquisition). (see liabilities) They represent claims against assets.a department in a retail store that is operated by an outside party. Leveraged Buyout (LBO) .obligations of an enterprise to pay cash or other economic resources in return for past. Net sales . Loop Layout .

a investment opportunity strategy focusing on increasing sales to present customers using the same retailing format. Mapping .See Market Penetration Opportunity. Market Expansion Opportunity . and other merchandising issues.a strategic investment opportunity employing the same retailing format in new market segments.See Positioning.a sign that is used to display the store’s name and/or logo. Market .the economic principle that firms should increase expenditures so long as each additional dollar spent generates more than a dollar of additional contribution. 16 . Marketing Segmentation .a discount retail store owned and operated by a manufacturer.a retailer’s sales divided by the sales of all competitors within the same market. publicity.a group of vendors in a concentrated geographic location or even under one roof. Market Attractiveness . Marginal Analysis . Market Development .percentage reduction in the initial retail price. store management.a method for analyzing opportunities that explicitly considers the capabilities of the retailer and the attractiveness of retail markets.See Analog Approach. Market Research .Manufacturer’s Outlet Store . Markup . and accounting and control.Competitive Position Matrix . but before it’s placed on the selling floor.the process of dividing a retail market into smaller homogeneous groups. Markdown Money .the increase in the retail price after the initial markup percentage has been applied. Market Positioning .the theoretical number of potential customers in a retailer’s market that could be exposed to an ad in a media vehicle.a term used in trade area analysis that estimates the annual per-person spending potential for each of the retail categories for the area divided by the national average. Market Expansion Potential (MEP) . Media Coverage . Market Share .funds provided by a vendor to a retailer to cover decreased gross margin from markdowns. Markdowns . Marquee . Mazur Plan .a method for all retail organizations in which all retail activities into four functional areas: merchandising. See Retail Market Segments.a term used in trade area analysis to estimate an area’s potential for creating new demand.the percentage increase in the retail price after a markdown is taken. Also know as central market.the systematic collection and analysis of information about a retail market. Market Penetration Opportunity . Markdown Cancellation . Market Indexes .

planning. however. the retailer takes title on delivery and is responsible for damages.S. Mixed-use Developments (MXDs) . This term is used interchangeably with acquisition (see also.a description of how customers evaluate alternatives based on the notion that customers see a store or a product as a collection of attributes or characteristics. and control of merchandise sold by a retailer. and size distributions) what should be carried in a particular merchandise category.See Code of Ethics.See Variety. Model Stock List . and convention complexes on top of or attached to the shopping areas. promotion. given turnover and sales objectives. Merchandise Management . Merchandising Variety .the basic psychological forces that motivate customers to act.Memorandum Purchase . Merchandise Classification . The retailer can return unsold merchandise. Also known as Multiple-Unit. retail sales in an area for moderate priced products. Mission Statement .See Category. Also known as Model Stock Plan. Moderate -Priced Products index (MPP). Merchandise Budget Plan . 17 .the amount to be ordered for delivery in each month. residential complexes.discounts given to customers for making quantity purchases.the analysis. Multiattribute Attitude Model . given the sales forecast. Merchandising . Mergers .See Multiple-Price Policy. Merchandise Shows . Morals of Society . acquisition. Multiple-Unit Pricing . inventory turnover.plan used by buyers to determine how much money they should spend in each month on a particular merchandise category. Multiple-Price Policy . Needs . Merchandise Category .See Trade Shows. See Consignment Purchase.shopping centers that have office towers.an index indicating the percentage of U. Reduced price offered when customers purchase several units at the multiple-unit price.the drive within people to expend effort to achieve goals.items not paid for by retailer until they are sold. hotels. Monthly Additions to Stock . and profit goals. National Brands . Motivation . leveraged buyout). civic centers. colors.See Manufacturer Brands.See Classification.financial strategy in which one larger firm acquires a smaller firm.a broad description on the scope of activities a retailer plans to undertake in the future.an assortment of fashion merchandise indicating in very general terms (product lines.See Merchandise Management.

shopping center that includes a supermarket. and controlled. drug store. direct selling. Off-price Retailer . Objective-and-task Approach . and direct marketing.key items or best-sellers that are separately listed planned.a measure of the overall performance of the firm. These items account for large sales volume and are stocked in manner so that they are always available. Net Worth . camera. or variety store (smaller stores often include apparel.method for setting a promotion budget that requires the retailer to undertake specific tasks for accomplishing communication objectives. shoe. These are “A” items in and ABC analysis. Net Lease . Net Sales . fashion-oriented soft goods at low prices. Nonstore retailing is conducted through vending machines.perishable products that are consumed in one or a few uses.a product liability suit that occurs if the retailer or a retail employee fails to exercise the care that a prudent person usually would.current liabilities representing principal and interest the retailer owes to financial institutions (banks) that are due and payable in less than a year. insurance. Neighborhood Business Districts (NBD) .total amount of dollars received by a retailer after all funds have been paid to customers for returned merchandise.an interaction between two or more parties to reach an agreement. Never-Out List .centers specializing in off-price retail tenants such as T. revenues (sales) minus expenses and losses for the period. Net Invoice Price .Negligence .See Owner’s Equity. and other shopping goods stores). 18 . Off-price Shopping Centers .lease requiring all maintenance expenses such as heat. to a price just under around number (such as $98 instead of $100).training conducted in centralized training classrooms away from the employees' work environment. Nonstore Retailing . home improvement center. Net Profit . Nondurables .the net value of the invoice or the total minus all other discounts.retailing to ultimate consumers that is not store-based.group of stores directed toward convenience shopping needs of customers in a neighborhood. Notes Payable .J. Neighborhood Center . Maxx or Burlington Coat Factory.retailers offering an inconsistent assortment of brand-name. and interior repair to be paid by the retailer. Off-the-job Training . Observation – a type of market research in which customer behavior is observed and recorded. Negotiation . Typically includes a supermarket and is located on the major street(s) of a residential area. Noncumulative Quality Discounts .discounts offered to retailers as an incentive to purchase more merchandise on a single order. Odd Price – prices ending in an odd number (such as 57 cents or 63 cents).

Option-Term Revolving Credit .persons whose attitudes.areas that have too many stores to profitably satisfy demand. depending on the range of other Opportunities available. Typically. Order Form . fixed price. this rate rises with the risk of the investment. such as every two weeks. after all obligations (liabilities) have been met.offers customers two payment options: (1) pay full amount within a specified number of days and avoid any finance charges.stores that offer all merchandise at a single. 19 . Outlet Centers . It should be no larger than the rate at which a firm borrows funds. Overstored . The review time is fixed. and actions affect others. Also known as net worth.plan that keeps track of how much is spent in each month (and how much is left to spend).revolving account that allows partial payments without interest charges if the bill is paid in full when it is due. Optical Character Recognition (OCR-A) . trading. Outshopping . opinions. or (2) make a minimum payment and be assessed finance charges on the unpaid balance.A description of how a retailer assigns authority and responsibility for performing retail functions and activities to employees. Organizational Culture .center specializing in manufacturers' outlets. since one alternative is to pay back borrowed money.an industry wide classification system for coding information onto merchandise.an inventory management system in which the buyer places an order when the quantity available gets down to a specified amount called the order point.a legally binding contract when signed by both parties. however. specifying the terms and conditions under which the transaction is to be conducted.One-price Retailer .is the rate available on the next best use of the capital invested in the project at hand. Enables retailers to record information on each SKU. and customs that guides employee behavior. when it is sold and transmit the information to a computer.A set of values.the amount of assets belonging to the owners of the retail firm. Opinion Leaders . On-the-job Training . Organization Structure .graphic displays the reporting relationships within the firm. Option Credit Account .a decentralized approach in which training occurs in the work environment where employees are performing their jobs. but the order quantity can vary. It can be higher. Open-to-buy . Order Point System . Owners Equity . Organization Chart .customers shopping in other areas because their needs are not being met locally. preferences. Opportunity Cost of Capital .

Post Purchase Behavior . Predatory Pricing . P. Popping the Merchandise .merchandise offered at a lower price.an interior display that provides customers with information and promotes the merchandise. Personal Selling . Power Shopping Centers .open-air shopping centers with the majority of space pre-leased to several well-known anchor retail tenants with high credit ratings. Planogram .trade areas whose boundaries conform to streets and other physical characteristics rather than being concentric circles. Population Density .Perceived Risk .method for establishing merchandise prices for the purpose of driving competition from the marketplace.focusing spotlighting on special feature areas and items. retail sales in a geographic area for 20 .a method for setting promotion budget based on a fixed percentage of forecasted sales. Poverty of Time .the number of persons living within a geographic area. rather than more free time.cash registers that often have the capability to electronically scan a UPC code with a laser and electronically record a sale. because the alternatives competing for consumers' time rise.S. .condition when greater affluence results in less.a lease relating rent to a retailer's sales or profits.an inventory planning method wherein the actual stock on hand during any month varies from average planned monthly stock by only half of the month's variation from average estimated monthly sales. Physical Inventory . Perpetual Book Inventory .further purchases and/or reevaluation based on a purchase. as an additional incentive for a customer to make a purchase.an oral presentation with one or more prospective purchasers for the purpose of making sales. Percentage of Sales Approach .See PushMoney.M. Percentage Lease . Polygons .See Retail Inventory Method.the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors.an index indicating the percentage of U. or free. Positioning .gathering stock information using an actual physical count and inspection of the merchandise items. Premium-Priced Products Index (PPP) . Also known as Computerized Checkout. Percentage Variation Method .a map that illustrates exactly where every SKU should be placed in a store.the level of risk that a consumer believes exists regarding the purchase of a specific good or service. Point-of-Sale Terminals (POS) . Premium . Point-of-Purchase Display .

Primary Trade Zone .the geographical area from which the store or shopping center derives 60 percent to 65 percent of its customers. See Vertical price Fixing and Horizontal Price Fixing. Price Elasticity of Demand . Preprints .products that are designed. Press Conference . Private Label Brands .data base combining census data.vendors illegally selling the same product to two or more retailers at different prices.meeting with the news media that is called by a retailer. Price Guarantee . Pricing Experiment .a retailer actually changes the price in a systematic manner to observe changes in purchases or purchase intentions. 21 . the manufacturer pays the retailer the difference between the planned retail and the actual retail selling price. controlled by and carry the name of the store or a name owned by the store.a measure of the effect a price change has on consumer demand. In the event a retailer cannot sell merchandise at a given price. Price Fixing . Price Lining .market research information collected through surveys.the practice of offering two or more products or services for sale at one price.pricing policy in which retailers offer a limited number of predetermined price points within a classification.premium priced products.characteristics of a product that affect customer evaluations. Also known as Store or Dealer Brands. produced. Private Label Store Credit Card System . (PRIZM) Potential Rating Index for Zip Markets . Price Discrimination . Also know as Multipleunit Pricing.credit cards with the store's name on it.consumers comparing the price of merchandise offered for sale with a higher “regular" price or a manufacturer's list price. Prestige Pricing . Price Comparisons .an illegal pricing activity in which several marketing channel members establish a fixed retail selling price for a product line within a market area.pricing based on the assumption that consumers will not buy goods and services at prices that they feel are too low. but the accounts receivable are sold to a financial institution. Product Attributes . Percentage change in demand divided by percentage change in price. observations and experiments to address a problem confronting a retailer. nationwide consumer surveys and interviews with hundreds of people across the country into a geo-demographic segmentation system. Primary Data . Price Bundling .terms of purchase that protects retailers against price declines.advertisements printed at the retailer's expense and distributed as a freestanding insert in the newspaper.

systems designed to reduce the lead time for receiving merchandise. Purchase Visibility Curve .an incentive for retail salespeople provided by a vendor to promote or ~ a particular product. Reach . Quick-Response (QR) Delivery Systems . Profitability .Product Liability . improving customer service levels.net profit after taxes divided by net sales. Rainchecks . Also known as just-in-time inventory management system. Quantity Discounts . Promotion . 22 . Profit Margin . Promotional or Discount-Oriented Centers .credit cards with the store's name on it.a company 's ability to generate revenues in excess of the costs incurred in producing those revenues.activities undertaken by a retailer to provide consumers information about the retailer's ~tore and its retail mix. plus smaller retail tenants.a type of specialty shopping center that contains one or more discount stores.performance goals or objectives established to evaluate employee performance such as sales per hour for salespeople and maintained margin and turnover for buyers.display technique in which the retailer tilts lower shelves so more merchandise is in direct view.a departmentalized store concentrating on apparel that sells a substantial portion of its merchandise on weekly promotion. Proprietary Store Credit Card System . Also known at a "Spiff" or P. Also known as In-house Credit System.see Noncumulative Quantity Discounts and Cumulative Quantity Discounts. Product Line . thereby lowering inventory investment.needs associated with the personal gratification that customers get from shopping or from purchasing and owning a product.additional salary of commission paid for attaining or exceeding an established sales quota.a tort that occurs when an injury results from the use of a product.communications through a significant.promises given to customers when merchandise is out of stock to sell customers merchandise at the sale price when the merchandise arrives. Puffing . unpaid presentation about the retailer (usually a news story) in nonpersonal media. Promotional Department Store .See Advertising Reach.M. Push Money . and reducing distribution expenses. Quota Bonus .a group of related products. Psychological Needs . Quotas . Publicity .a advertising or personal selling practice in which a retailer simply exaggerates the benefits or quality of a product in very broad terms. and the credit system is administered by the retailer.

Resale Price Maintenance .warehouse and transportation .the process of filling out paperwork to record the receipt of merchandise that arrives at a store or distribution center. 23 .a legal issue in which both a vendor and a retailer reserve the right to deal or refuse to deal with anyone they choose.Rebate . Retail Format -~ A type of retail mix used by a number or retailers.See Vertical Price Fixing. Retail Chain .a dating policy in which the cash discount period starts on the day the merchandise is received. Reorder Point .model used in trade area analysis to define the relative ability of two cities to attract customers from the area between them. wholesaler. Retail Audit .activity by a retailer to generate job applicants. Reilly's Law . or distributor .the stock level at which a new order is placed. discounts to employees and customers.system providing the information needed by retail managers by collecting. Restraint of Trade . Retail Accordi6n Theory . Regional Center .shopping center that includes up to three department stores plus shopping or specialty stores rather than convenience stores (Super-regionals are similar but have at least four department stores. Retail Format Development Opportunity .a diversification opportunity strategy in which the retailer operates shares something in common with the market that the retailer is entering. Resident Buying Office .See Accordion Theory. Reductions . Recruitment .the vendor. artificially maintain prices.an agent of or owned and operated by a retailing organization that is located in an important market area (source of supply) and provides valuable information and contacts. create a monopoly.a firm consisting of multiple retail units under common ownership that usually has some centralization of decision making in defining and implementing its strategy.any contract that tends to eliminate or stifle competition. and storing relevant data continuously and directing the information to the appropriate managers. and inventory shortages that are due to shoplifting. or otherwise hamper or obstruct the course of trade and commerce as it would be carried on if left to the control of natal forces. breakage or loss. Refusals to Deal .through the internal processing functions . organizing.money returned to the buyer in the form of cash based on a portion of the purchase price.markdowns.See Situation Audit. Also known as "unfair trade practices". Related Diversification . Receiving . Retail Information Systems .a investment opportunity strategy by a retailer offering a new retail format to present customers. Receipt of Goods Dating (ROG) .until the merchandise is sold and delivered to the customer.the organization process of managing the flow of merchandise from the source of supply . Retail Distribution (also known as logistics) .).

a group of consumers with similar needs (a segment) and a group of retailers using similar retail mixes (types of merchandise.Inventory used as a safety cushion for cycle stock so the retailer won't run out of stock if demand exceeds the sales forecast.goods sold which are brought back for credit. Review Time . Retailer . Role Conflict .the period of time between reviews of the line for buying purchase decisions. and visual merchandising. Retailing .the degree to which employees know what their duties and responsibilities are. Retail Mix . Return on Owners Equity . Ribbon Centers .a management orientation that holds that the key task of a retailer is to determine the needs and wants of its target markets and to direct the firm toward satisfying those needs and wants more effectively and efficiently than competitors.congressional act revising section 2 of the Clayton Act and specifically prohibits price discrimination. but has not been paid out in dividends to owners. Safety Stock Merchandise . and to maintain records that make it possible to determine the cost value of the inventory at any time without taking a physical inventory.a group of customers whose needs will be satisfied by the same retail offering because they have similar needs and go through similar buying processes.See Stockkeeping Unit.Retail Inventory Method .See Strip Centers. store design and location. Also known as Return on Owners Equity.the set of business activities involved in selling products and services to the ultimate (final) consumer. promotions.the factors used by a retailer to satisfy customer needs and influence their purchase decisions. and (3) the bases upon which the retailer will attempt to build a sustainable competitive advantage over competitors. Retail Strategy . prices. Return of Assets . Routine Decision Making . SKU . Also known as Book Inventory System or Perpetual Book Inventory.a statement indicating (1) the target market toward which a retailer plans to commit its resources. advertising and promotions. Retailing Concept . pricing.the portion of owners' equity that has accumulated over time through profits. Robinson-Patman Act (1946) . Retained Earnings . 24 .a business that sell products and services to ultimate consumers.the degree to which employees receive mixed messages about the scope of their activities. Role Clarity . and services) to satisfy~ those consumer needs. Retail Market Segment .net profit after taxes divided by total assets. Includes merchandise and service offered. (2) the nature of the retail offering that the retailer plans to use to satisfy the needs for the target market.See Habitual Decision Making.net profit after taxes divided by owners equity. Returns .an accounting procedure whose objectives are to maintain a perpetual or book inventory in terms of retail dollar amounts. Retail Market .

Service Level . applies to a specific time period & may be expressed in dollars or in physical units. Selling Space .difference between the recorded value of inventory (at retail) based on merchandise bought and the retail value of actual inventory in stores and distribution centers divided by retail sales during a time period. Satisfaction . generating about 20 percent of a store's sales. Shoplifting . Self-Service . Shrinkage . The number of items sold divided by the number of items demanded.area set aside for displays of merchandise. Seasonal Discount . and so on. typically measured by sales per hour.act protecting small businesses and consumers from large corporations by outlawing any person.Sale-Leaseback . 25 .the geographic area of secondary importance in terms of customer sales. Sales Quota .the act of stealing merchandise from a store by customers or people posing as customers. Secondary Trade Zone . Sherman Anti-Trust Act (1890) .a retailer offering unrelated merchandise categories. corporation. or association from engaging in activities that have the effect of restraining trade or commerce. Sell-Through Analysis .cost advantages due to the size of a retailer.See Shrinkage. Secondary Data . Shortage .an additional discount offered as an incentive to retailers to place orders for merchandise in advance of the normal buying season.market research information gathered for purposes other than solving the current problem under investigation. nonpersonal communication activities that offer extra value and incentives to customers to visit a store and/or purchase merchandise during a specific period of time.projected volume of sales assigned to a selling unit or sales associate for use in mgmt of sales efforts.a comparison between actual and planned sales to determine whether early markdowns are required or whether more merchandise is needed to satisfy demand. Scrambled Merchandising .the efficiency of salespeople.retailers offering minimal customer service. interactions between sales personnel and customers. Scale Economies . Sales Promotions .used in inventory management to define the level of support or level of product availability. Sales Productivity .a postconsumption evaluation of the degree to which a store or product meets or exceeds customer expectations. Shopping Goods Products . Should not be confused with customer service (see customer service). demonstration.the practice of retailers building new stores and selling them to real-estate investors who then lease the buildings back to the retailers on a long-term basis.paid.Products for which consumer will spend time comparing alternatives.

(2) the assessment of the objectives and capabilities of competitors.000. Specialization . color.stores with a department store format that focus primarily on apparel and soft home (such as Neiman Marcus and Parisian).inventory that has continuous demand by customers (also known as basic merchandise).See Analog Approach. Specialty Center . Slotting Allowances . It is based on the store's physical characteristics. 26 . Stock Keeping Unit (SKU) . style. Sole Proprietorship . Store Brands .a figure which stores establish as an average selling cost for use in budgeting. Socialization .Shrinkage is caused by shoplifting by employee and/or customers.tradeoffs associated with determining variety. an SKU usually means size.employees are assigned a limited set of tasks to perform. and (3) the assessment of the strengths and weaknesses of the business relative to its competition.fees paid by a vendor for space in a retail store.the amount by which a retail book inventory figure exceeds a physical ending inventory.the way in which a store is defined in a shopper's mind. Store Loyalty .an unincorporated retail firm owned by one person.beginning of month inventory divided by sales for the month. In soft goods merchandise. Specialty Department Stores .those products for which the customer will spend considerable effort to buy.the steps taken to transform new employees into effective and committed members of the firm. retailing mix.the smallest unit available for keeping inventory control.See Push Money.the number of subordinates reporting to a manager. This ratio is an integral component of the merchandise budget plan. Standard Metropolitan Statistical Area (SMSA) . Staple Merchandise .geographic area consisting of a central city with a population exceeding 50. planning and evaluating sales associates and/or selling units. usually between 5% and 7 ~. assortment. Spiff . Stock Overage .analysis containing three elements (1) the assessment of the attractiveness of different retail markets in which the business is competing or might compete.See Private Label Brands. Specialty Products . Standard Selling Cost . and service levels. and merchandise being misplaced or damaged. Stock-to-Sales Ratio . Situation Audit . The average stock-to-sales ratios is 12 divided by planned inventory turnover. and a set of psychological attributes. Stock Balance . Spotting Techniques . Store Image . Span of Control .a condition in which a customer regularly patronizes a specific retailer.see promotional or discount anchored centers and fashion-oriented center.

large supermarkets between 20.a market research technique for systematically collecting information.a product liability suit in which the injury may not have been intentional or under the retailer's control. Terms of Purchase .a grand design or blueprint indicating the retail strategy and the steps for implementing the plan. Also known as fringe trade area. Sustainable Competitive Advantage . outline.compensation plan in which salespeople or managers receive a fixed amount of compensation for each hour or week they work. Subjective Employee Evaluation . Tertiary Trade Zone .000 and 50. or gift wrapping.assessment of employee performance based on supervisor's ratings. delivery. Sweepstakes . Straight Salary Compensation . Strategic Profit Model . or the store's exchange policies. a retailer's objective is to achieve a target return on owner's equity Strategic Retail Plan .conditions in a sales contract with customers including such issues as charges for alterations. Style .involves the planning of retailer's financial strategy based on both margin management (net profit margin). Strip Centers .Store Visibility . Substitute Awareness Effect . Superstores . Target Market . Using the strategic profit model.000 square feet in size.the customer group to which a retailer targets its retail mix.a distinct competency of a retailer relative to its competitors that can be maintained over a considerable time period. and financial leverage management (financial leverage ratio).promotions in which customers win prizes based on chance.smaller shopping centers that ~comprise several adjacent stores located along a major street or highway. Terms of Sales .See Visibility. Also known as Ribbon Centers. Strict Product Liability . Supermarket . or shape of a product.the outermost ring of a trade area.a condition in which customers become more price sensitive because there are a lot of substitutes for a product or for a retailer. 27 . asset management (asset turnover).a term used in trade area analysis to define percentage of space which should be devoted to each retailer type in the shopping center. Suggested Tenant Mix (MIX) . Survey .the characteristic or distinctive form.See Conventional Supermarket. rather then objective measures such as sales per hour.conditions in a purchase agreement with a vendor that includes the type(s) of discounts available and responsibility for transportation costs. includes customers who occasionally shop at the store or shopping center.

Title VII of the 1964 Civil Rights Act .occurs when a retailer creates an unreasonable distress on a competitor or a customer. Typically contain tenants similar to specialty centers.display technique in which a large quantity of merchandise is displayed ~together.Theme Center . Ultimate Consumers . age or national origin.individuals who purchase goods and services for their own personal use or for use by members of 28 .purchase exchange between the customer & retailer.vendor and a retailer entering into an agreement requiring the retailer to take a product it does not necessarily desire (the "tied product") to ensure it can buy a product it does desire (the "tying product"). except there usually is no large specialty store or department store as anchor (see historical center and specialty center).shopping centers that try to replicate a historical place. picture.it is unlawful for a retailer to discriminate on the basis of race. sex.a temporary concentration 6f vendors that provide retailers opportunities to place orders and view what is available in the marketplace. Transportation Cost .law suit occurring when one person or firm disturbs another person or firm's legally created rights. Ticketing and Marking . Tort of Disparagement of Goods . Also known as Merchandise Shows. Tonnage Merchandising . Tort of False Imprisonment .reductions in a retailer's suggested retail price granted to wholesalers or retailers. Traditional Specialty Store .the expense a retailer incurs if they pay the cost of shipping merchandise from the vendor to the stores. religion. Tie-Ins .000 square feet in size. Trademark . or design that is associated with merchandise. Tying Contracts . and providing a high level of service in under 8. Also known as functional discounts.unlawful restraint of an individual's liberty or freedom of movement. Triple Coupon Promotion .procedures for making price labels and placing them on the merchandise.unlawful publication of a false statement about the character or quality of a competing retailer's product.a condition in which customer price sensitivity increases when the total expenditure is large.geographic sector containing potential customers for a particular retailer or shopping center.involves cases where a third party interferes or disrupts a relationship or a contract between two parties. Trade Discounts . Total Expenditure Effect . Trade Shows . work.a retail promotion that allows the customer triple the face value of the coupon. Tort . Tort of Interference with Business Relations or a Contract .any mark.retailer selling a limited number of complementary merchandise categories. Tort of Intentional Infliction of Emotional Distress .an approach to attract attention to a store's offering by associating the offering with an event. Transaction . Trade Area .

Variable Expenses . signage.. Variety .Diversification in which there is no commonality between the present and the new business. Undercover Shoppers . Unrelated Diversification .method of organizing merchandise whereby merchandise is organized to follow the eye's natural movement to move up and down. Vertical Integration .information collected by retail salespeople to record out-of-stock or requested merchandise. retailers and their vendors. and theatrical effects both in the store and in windows to help boost sales by providing information on products.any firm from which a retailer obtains merchandise. Vendor .an interactive electronic system in which a retailer transmits data and graphics over cable or telephone lines to a consumer's TV or terminal. Vending Machine Retailers . Visibility .black and white bar-codes found on almost all grocery and discount store products and on an increasingly large number of department and specialty store merchandise.involves agreements to fix prices between parties at different levels of the same marketing channel.g. Unity of Command . Similar to a Want Slip.discount food retailers that offer merchandise in a no-frills environment.a firm that performs more than one function in the channel. UPC (Universal Product Code) .an inventory management method that is most similar to the stock-to-sales method. Visual Communications .describes the appropriate relationship between managers and their subordinates.the ability to see the store and enter the parking lot safely.providing information to customers involving graphics. Utility .the number of different merchandise categories within a store or department. Also known as Resale Price Maintenance or Fair Trade Laws. Warehouse Store . Week's Supply Method . The difference is that everything is expressed in weeks rather than months 29 . Vertical Price Fixing . Value Pricing .setting prices based on fair value for both the service provider and the consumer.their household.the consumer's perception of the benefits of the product and services offered by the retailer. Videotex Retailing . suggesting items or special purchases Want Book . Unit Price .a form of nonstore retailing in which customers purchase and receive merchandise from a machine. e.expenses that vary with the volume of sales. Vertical Merchandising .practice of expressing price both in terms of the total price of an item and the price per unit of measure.people hired by or working for a retailer who pose as customers to observe the activities and performance of employees.

Zoning .a cyclical theory of retail evolution whose premise is that retailing institutions trade from low price/service to higher price/service operations.the regulation of the construction and use of buildings in certain areas of a municipality. Wholesale Club . 30 .a general merchandise retailer that offers a limited merchandise assortment with little service at low prices and sells to ultimate consumers and member trade people.Wheel of Retailing .

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