bargaining power of vendors

A competitive factor that makes markets unattractive when a few vendors control the merchandise sold in it. In these situations, vendors have an opportunity to dictate prices and other terms, reducing retailer’s profits.

barriers to entry

Conditions in a retail market that make it difficult for firms to enter the market.

competitive rivalry

The frequency and intensity of reactions to actions undertaken by competitors.

cross-selling

When sales associates in one department attempt to sell complementary merchandise from other departments to their customers.

customer loyalty

Customers’ commitment to shopping at a store.

data warehouse

The coordinated and periodic copying of data from various sources, both inside and outside the enterprise, into an environment ready for analytical and informational processing. It contains all of the data the firm has collected about its customers and is the foundation for subsequent CRM activities.

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.

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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.

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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.

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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.

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