Multi attribute attitude model

A model of customer decision making based on the notion that customers see a retailer or a product as a collection of attributes or characteristics. The model can also be used for evaluating a retailer, product, or vendor. The model uses a weighted average score based on the importance of various issues and the performance on those issues.

Post purchase evaluation

The evaluation of merchandise or services after the customer has purchased and consumed them.

Psychological needs

Needs associated with the personal gratification that customers get from shopping or from purchasing and owning a product.

PRIZM

A database combining census data, nationwide consumer surveys, and interviews with hundreds of people across the country into a geo-demographic segmentation system.

psychographics

Refers to how people live, how they spend their time and money, what activities they pursue, and their attitudes and opinions about the world they live in.

read more »

demographic segmentation

A method of segmenting a retail market that groups consumers on the basis of easily measured, objective characteristics such as age, gender, income and education.

fashion

Category of merchandise that typically lasts several seasons, and sales can vary dramatically from one season to the next.

functional needs

The needs satisfied by a product or service that are directly related to its performance.

Geo-demographic segmentation

A market segmentation system that uses both geographic and demographic characteristics to classify consumers.

Geographic segmentation

Segmentation of potential customers by where they live. A retail market can be segmented by countries, states, cities, and neighborhoods.

habitual decision making

A purchase decision involving little or no conscious effort.

read more »

Multi-channel retailer

Retailer that sells merchandise or services through more than one channel.

share of wallet

The percentage of total purchases made by a customer in a store.

Shopping bots

Computer programs that simply search for and provide a listing of all Internet sites selling a product category or brand with the price of the merchandise offered.

Virtual communities

A network of people who seek information, products, and services and communicate with each other about specific issues.

Accessibility

(1) The degree to which customers can easily get into and out of a shopping center; (2) ability of the retailer to deliver the appropriate retail mix to the customers in the segment.

benefit segmentation

A method of segmenting a retail market on the basis of similar benefits sought in merchandise or services.

brand loyalty

An example of habitual decision making that occurs when consumers like and consistently buy a specific brand in a product category.

buying process

The stages customers go through to purchase merchandise or services.

buying situation segmentation

A method of segmenting a retail market based on customer needs in a specific buying situation such as a fill-in shopping trip versus a weekly shopping trip.

read more »

Retail chain

A firm that consists of multiple retail units under common ownership and usually has some centralization of decision making in defining and implementing its strategy.

Services retailer

Organization that offers consumers’ services rather than merchandise. Examples include banks, hospital, health spas, doctors, legal clinics, entertainment firms, and universities.

SKU (stock keeping unit)

The smallest unit available for keeping inventory control. In soft goods merchandise, an SKU usually means size, color, and style.

specialty catalog retailer

A non store retailer that focuses on specific categories of merchandise, such as fruit (Harry and David), gardening tools (Smith & Hawken), and seeds and plants (Burpee). [Go to their website and understand how they operate]

Specialty store

Store concentrating on a limited number of complementary merchandise categories and providing a high level of service in an area typically under 8,000 square feet.

Super-center

Large store (150,000 to 200,000 square feet) combining a discount store with a supermarket.

read more »

Electronic retailing

A retail format in which the retailers communicate with customers and offer products and services for sale over the Internet.

Factory outlet

Outlet store owned by a manufacturer.

Franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a retail outlet using a name and format developed and supported by the franchisor.

General merchandise catalog retailers

Non-store retailers that offer a broad variety of merchandise in catalogs that are periodically mailed to their customers.

Home improvement center

A category specialist offering equipment and material used by do-it-yourselfers and construction contractors to make home improvements.

Hypermarket

Large (100,000 to 300,000 square feet) combination food (60 –70 percent) and general merchandise (30 –40 percent) retailer.

read more »