Chapter16: Retailing and Multichannel Marketing

extreme value retailers

A general merchandise discount store found in lower-income urban or rural areas.

service retailers

A firm that primarily sells services rather than merchandise.

department stores

A retailer that carries many different types of merchandise (broad variety) and lots of items within each type (deep assortment); offers some customer services; and is organized into separate departments to display its merchandise.

category specialists

A retailer that offers a narrow variety but a deep assortment of merchandise.

category killers

A specialist that offers an extensive assortment in a particular category, so overwhelming the category that other retailers have difficulty competing.

drugstores

A specialty store that concentrates on health and personal grooming merchandise, though pharmaceuticals may represent more than 60 percent of its sales.

intensive distribution

A strategy designed to get products into as many outlets as possible.

specialty stores

A type of retailer that concentrates on a limited number of complementary merchandise categories in a relatively small store.

off-price retailers

A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices.

cannibalization

Customers who formerly made purchases through one retail channel switch to a different retail channel without increasing the overall sales to the retailer.

irregulars

Merchandise with minor construction errors.

full-line discount stores

Retailers that offer low prices, limited service, and a broad variety of merchandise.

extreme value food retailers.

Retailers that offer only one or two brands or sizes of most products (usually including a store brand) and attempt to achieve great efficiency to lower costs and prices

limited assortment supermarkets

Retailers that offer only one or two brands or sizes of most products (usually including a store brand) and attempt to achieve great efficiency to lower costs and prices.

distribution intensity

The number of supply chain members to use at each level of the supply c.

opt in

The option giving consumer complete control over the collection and dissemination of his/her personal information, usually referred to in an Internet setting.

opt out

The option whereby consumer must actively choose to prevent personal information from being used or shared with third parties, usually referred to in an Internet setting.

share of wallet

The percentage of the customer's purchases made from a particular retailer.

retailing

The set of business activities that add value to products and services sold to consumers for their personal or family use; includes products bought at stores, through catalogs, and over the Internet, as well as services like fast-food restaurants, airlines, and hotels.

conventional supermarket

Type of retailer that offers groceries, meat, and produce with limited sales of nonfood items, such as health and beauty aids and general merchandise, in a self-service format.

convenience stores

Type of retailer that provides a limited number of items at a convenient location in a small store with speedy checkout.

home improvement center

Category specialist that offers home improvement tools for contractors and do-it-yourselfers.

mobile commerce (M-commerce)

Communicating with or selling to consumers through wireless handheld devices such as cellular phones.

cookie

Computer program, installed on hard drives, that provides identifying information.

big box retailers.

Discount stores that offer a narrow but deep assortment of merchandise

stock keeping unit (SKU)

Individual items within each product category; the smallest unit available for inventory control.

online chat

Instant messaging or voice conversation with an online sales representative.

warehouse clubs.

Large retailers with an irregular assortment, low service levels, and low prices that often require

supercenters

Large stores combining full-line discount stores with supermarkets in one place.

selective distribution

Lies between the intensive and exclusive distribution strategies; uses a few selected customers in a territory.

outlet stores

Off-price retailers that often stock irregulars, out-of-season merchandise, or overstocks from the parent company.

factory outlets

Outlet stores owned by manufacturers.

multichannel strategy

Selling in more than one channel (e.g., stores, Internet, catalog).

close-out retailers

Stores that offer an inconsistent assortment of low priced, brand name merchandise.

exclusive distribution

Strategy in which only selected retailers can sell a manufacturer's brand.