no slide title - umasspeople.umass.edu/debevec/mktg491r/jeopardretailexam1pdf.pdfby store employees...

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RetailingCustomer

ServiceStrategicPlanning Wild Card Financial

Strategy

Retailing institution that purchases brand name merchandise on an opportunistic basis, sells it well

below the manufacturers suggested retail price, and seeks to attract

department store shoppers (R100)

What are off-price chains?

A function performed by retailers and wholesalers in which they

receive large quantities of merchandise and sell them in smaller

quantities (R200)

What is breaking bulk?

The set of business activities that adds value to the products and

services sold to consumers for their personal use (R300)

What is retailing?

Competition between retailers that sell similar merchandise using

different format, such as discount and department stores (R400)

What is intertype competition?

The number of SKUs within a merchandise category – the depth of

merchandise (R500)

What is assortment?

A conceptual model that indicates what retailers need to do to provide

high quality customer service (CS100)

What is the Gap Model of Service Quality?

The difference between the actual service provided to customers and

the service promised in the retailer’s promotion program (CS200)

What is the communications gap?

The difference between the retailer’s service standards and the actual service provided to customers

(CS300)

What is the delivery gap?

The difference between customers expectations and the retailer’s

perception of customer expectations (CS400)

What is the knowledge gap?

Professional shopper who shops a store to assess the service provided

by store employees (CS500)

What is a mystery shopper?

When a retailer grows their business by using a new format to attract new

segments (SP 100)

What is diversification?

Retail strategy that focuses on increasing sales to present customers

using the present retailing format (SP 200)

What is market penetration?

A distinct competency of a retailer relative to its competitors that can be

maintained over a considerable period of time (SP 300)

What is a sustainable competitive advantage?

When sales associates in one department attempt to sell

complementary merchandise in another department to their

customers (SP 400)

What is cross-selling?

Diversification by retailers involving investments in wholesaling or

manufacturing merchandise; An example is Zale’s designing jewelry

as well as selling it (SP 500)

What is vertical integration?

New types of retailers enter a market as low price, low status merchants

(WC 100)

What is the Wheel of Retailing?

When retailers mutually adapt in the face of competition from others; an example is a discount department

store (WC 200)

What is the dialectic process?

Seeking a long-term relationship with customers rather than viewing each sale as a new encounter (WC

300)

What is relationship retailing?

Type of distribution in which a retailer is required by a manufacturer

to carry only its products and no competing vendor’s products (WC

400)

What is exclusive distribution?

The combination of factors used by a retailer to satisfy customer needs and

influence their purchase decision; includes merchandise offered,

service, pricing, advertising, store design and location (WC 500)

What is the Retail Mix?

A model used to plan a retailer’s financial strategy based on margin

management, asset management, and financial leverage (FS 100)

What is the Strategic Profit Model?

Net profit margin X Asset turnover; Net profits after taxes divided by

total assets (FS 200)

What is Return on Assets?

Return on Assets X Leverage Ratio (FS 300)

What is return on net worth (RONW)?

Net sales divided by average inventory (FS 400)

What is inventory turnover?

How much profit each dollar of sales generates (FS 500)

What is Net Profit Margin?