VBM Retailing Vocabulary Flashcards

Questions and Answers

What is market research?

A type of product promotion.

A method of observing customer behavior.

The assessment of competition in the market.

The process of gathering consumer information. (correct)

What are facts discovered in the market research process?

Data

What is primary data?

Facts collected for the first time for the problem under study.

What is a survey?

A series of questions asked to a select and representative group of people to obtain quantitative data. Signup and view all the answers

What does observation refer to in market research?

An information-gathering technique that involves watching people. Signup and view all the answers

What is a focus group?

A small group of 8-15 people providing qualitative data. Signup and view all the answers

What is sample size?

The number of people questioned for a survey. Signup and view all the answers

What is secondary data?

Facts collected previously for a purpose other than the problem being studied. Signup and view all the answers

What is qualitative research?

Research used to discover consumer information. Signup and view all the answers

What is quantitative research?

Research that answers questions about quantities and amounts. Signup and view all the answers

What does competition refer to in a business context?

Other businesses trying to attract the same customers. Signup and view all the answers

What is consultative selling?

A selling approach where the salesperson determines customer needs. Signup and view all the answers

What does consumability refer to?

The speed with which products are used up. Signup and view all the answers

What is marketability?

The ease with which products can be sold. Signup and view all the answers

What is merchandise?

The products or goods that a retail store has for sale. Signup and view all the answers

What does perishable mean in a retail context?

Product that has a limited shelf life. Signup and view all the answers

What are price points?

The typical selling prices at which goods are sold. Signup and view all the answers

What does profitability refer to?

The amount of money that can be made from sales. Signup and view all the answers

What are seasonal goods?

Goods whose sales fluctuate according to the time of year. Signup and view all the answers

What is a shopping center?

A group of retail businesses located together. Signup and view all the answers

What is a mall?

An enclosed area containing many stores. Signup and view all the answers

What is a strip mall?

A neighborhood space composed of separate stores connected by sidewalks. Signup and view all the answers

What is a business district?

An unenclosed shopping area evolved with a variety of stores. Signup and view all the answers

What is a freestanding location?

A store that is unattached to other stores. Signup and view all the answers

What is a trade area?

A business's geographic surroundings providing customers. Signup and view all the answers

What does traffic mean in retail?

The number of people who go by a store location. Signup and view all the answers

What is a competitive business?

One that sells the same or comparable merchandise. Signup and view all the answers

What is a complementary business?

One that sells related merchandise. Signup and view all the answers

What is a lease?

A contract for use of a property for a specified time. Signup and view all the answers

What is a fixed-rate lease?

A lease that charges a specific amount of rent each month. Signup and view all the answers

What is a percentage lease?

A lease that bases rent on the percentage of sales. Signup and view all the answers

What is a triple net lease?

A lease that charges rent plus operating costs. Signup and view all the answers

What does price refer to?

The amount of money charged for items. Signup and view all the answers

What does cost mean in a retail context?

The amount the store pays to purchase merchandise. Signup and view all the answers

What does profit refer to?

The total revenue less all expenses. Signup and view all the answers

What does margin refer to?

The difference between retail price and cost. Signup and view all the answers

What does supply and demand describe?

The relationship between product availability and consumer willingness. Signup and view all the answers

What is market share?

The percentage of total sales a store has in its area. Signup and view all the answers

What is a markdown?

Reduction in price to increase sales of underperforming products. Signup and view all the answers

What is promotion in business?

The positive communication a business has with customers. Signup and view all the answers

What is product promotion?

Promotion of a store's merchandise. Signup and view all the answers

What is institutional promotion?

Promotion meant to heighten a store's image. Signup and view all the answers

What is personal selling?

Promotion involving paid sales associates interacting with customers. Signup and view all the answers

What is sales promotion?

Activities meant to encourage customers to make purchases. Signup and view all the answers

What is advertising?

Communication to customers paid for by a business. Signup and view all the answers

What is a circular in marketing?

An insert into a magazine or newspaper that contains product offers. Signup and view all the answers

What is public relations?

Unpaid references to a business to further a positive impression. Signup and view all the answers

What is publicity?

A form of public relations that highlights newsworthy aspects of a business. Signup and view all the answers

What is a promotional mix?

The combination of the types of promotion a business uses. Signup and view all the answers

What is the Federal Trade Commission (FTC)?

An agency that enforces advertising laws to protect consumers. Signup and view all the answers

What is a cease and desist order?

An order forcing advertisers to stop false advertising. Signup and view all the answers

What does bait and switch refer to?

Advertising a product at a low price but offering a more expensive item. Signup and view all the answers

What is an address list in marketing?

A set of email addresses of potential customers. Signup and view all the answers

What does bounce mean in email marketing?

An email that cannot be delivered. Signup and view all the answers

What is spam in the context of email?

Any email that a recipient does not wish to receive. Signup and view all the answers

What is cost per name in email campaigns?

The expense of developing an email list divided by the number of opens. Signup and view all the answers

What is the CAN-SPAM Act?

A federal law regulating mass commercial emails. Signup and view all the answers

What is response rate in email marketing?

The effectiveness measured by the number of responses divided by emails sent. Signup and view all the answers

What is a subject line in an email?

The part visible before opening the message. Signup and view all the answers

What is a loyalty program?

Any program that builds and maintains repeat customers. Signup and view all the answers

What is staffing?

The assignment of workers to jobs within a business. Signup and view all the answers

What is staffing level?

The number of workers assigned at a particular time. Signup and view all the answers

What is understaffing?

Not enough staff to handle customers. Signup and view all the answers

What is overstaffing?

Too many staff members for the customer traffic. Signup and view all the answers

What are wages?

Payments made to employees for their work hours. Signup and view all the answers

Who is a buyer?

The person responsible for purchasing merchandise for a store. Signup and view all the answers

What is open-to-buy?

The amount of money available for purchasing items. Signup and view all the answers

What is a vendor?

A business from which a buyer purchases merchandise. Signup and view all the answers

What is inventory?

The total amount of goods a business has. Signup and view all the answers

What is stock?

Another term for inventory. Signup and view all the answers

What is an invoice?

A vendor's bill for stock purchased. Signup and view all the answers

What is inventory control?

The management of merchandise a store has for sale. Signup and view all the answers

What is a just-in-time inventory control system?

A method linking a store to its suppliers for automatic purchases. Signup and view all the answers

What is a physical inventory system?

An inventory system using periodic counts of stock. Signup and view all the answers

What is a perpetual inventory system?

An inventory system that continuously tracks stock items. Signup and view all the answers

What is stock turnover?

A measure of how often stock is sold within a time period. Signup and view all the answers

What is store layout?

The arrangement of store fixtures, equipment, and merchandise. Signup and view all the answers

What is a grid layout?

Characterized by long rows of shelving with aisles. Signup and view all the answers

What is a loop layout?

Designed to lead customers from the front back to the front. Signup and view all the answers

What is a free flow layout?

Features merchandise arranged in asymmetrical patterns. Signup and view all the answers

What is a spine layout?

Features a center aisle extending from the front to the back of the store. Signup and view all the answers

What are fixtures?

Store furnishings used to hold and display merchandise. Signup and view all the answers

What are impulse purchases?

Usually small items purchased with little thought. Signup and view all the answers

What are point of purchase (POP) displays?

Sales tools designed to encourage impulse purchasing. Signup and view all the answers

What is related merchandise?

Items related to each other that usually sell together. Signup and view all the answers

What is shrinkage?

Inventory losses from various factors like theft and error. Signup and view all the answers

What is a physical inventory?

A count and inspection of all merchandise in a store. Signup and view all the answers

What is book value in inventory?

The value of inventory recorded in business records. Signup and view all the answers

What is shoplifting?

The removal of items from a store without payment. Signup and view all the answers

What is employee theft?

The unauthorized taking of merchandise by an employee. Signup and view all the answers

What are start-up costs?

Costs associated with opening and operating a new business. Signup and view all the answers

What is sweat equity?

Unpaid work put into a business that increases its value. Signup and view all the answers

What is a personal financial report?

A statement of an individual's personal financial status. Signup and view all the answers

What is an asset?

Any tangible item of value an individual owns. Signup and view all the answers

What is a liability?

Any debt an individual owes. Signup and view all the answers

What is net worth?

The difference between total assets and total liabilities. Signup and view all the answers

What is an income statement?

A report outlining projected business revenue and expenses. Signup and view all the answers

Study Notes

Market Research Concepts

Market Research: A systematic process for gathering and analyzing data about consumers to inform business decisions.
Primary Data: Original information collected specifically for the issue being examined.
Secondary Data: Pre-existing information gathered for purposes other than the current research problem.

Data Collection Methods

Survey: A structured set of questions directed at a representative group to collect quantitative data.
Observation: An approach that collects data through direct watching of customer behaviors.
Focus Group: A moderated discussion with a small group of people to obtain qualitative insights.

Types of Research

Qualitative Research: Explores consumer perceptions that can be validated through quantitative measures.
Quantitative Research: Utilizes larger sample sizes to gather numerical data for statistical analysis.

Key Business Terms

Competition: Other businesses vying for the same customer base.
Consultative Selling: A selling approach where the salesperson helps customers identify their own needs.

Product Concepts

Consumability: The rate at which products are used up and need to be repurchased.
Marketability: The ease or difficulty of selling a product.
Perishable Goods: Products with a limited shelf life, requiring prompt sales.
Seasonal Products: Items whose demand fluctuates based on the time of year.

Retail Location Types

Shopping Center: A collection of retail businesses grouped together.
Mall: An enclosed structure housing various stores with adjacent parking.
Strip Mall: A collection of stores linked by sidewalks in a neighborhood setting.
Freestanding Location: An independent store not attached to other businesses.

Leasing and Financial Terms

Lease: A formal agreement between landlord and tenant stipulating rent terms.
Fixed-rate Lease: A lease with a set monthly payment.
Percentage Lease: Rent based on a percentage of sales generated by the tenant.
Triple Net Lease: Rent plus additional operating expenses the tenant must pay.

Pricing and Profitability

Price: The dollar amount set for items offered for sale.
Cost: The expense incurred by a store to acquire goods.
Profit: Revenue minus all expenses over a specific time.
Margin: The difference between retail price and cost price of an item.

Inventory Management

Inventory: The total stock available in a store, including in storage and on display.
Just-in-Time Inventory: An automated inventory method that links sales data with suppliers to manage stock levels.
Stock Turnover: A metric that indicates how quickly inventory sells over a period.

Store Layout Enhancements

Store Layout: The design and arrangement of merchandise and fixtures.
Impulse Purchases: Small, spontaneous purchases often driven by product placement.
Point of Purchase Displays: Marketing tools used to promote items at checkout or key areas in-store.

Loss Prevention

Shrinkage: Inventory loss due to theft, errors, or damages.
Shoplifting: The act of stealing items directly from a retail establishment.
Employee Theft: Unauthorized removal of merchandise by store employees.

Financial Insights

Start-up Costs: Initial expenses incurred when opening a new business.
Sweat Equity: The value added to a business through the owner’s unpaid efforts.
Net Worth: A financial measure calculated as total assets minus total liabilities.
Income Statement: A financial report detailing income and expenditures over a period.

Regulatory and Compliance

Federal Trade Commission (FTC): A government agency that enforces advertising laws to protect consumers.
CAN-SPAM Act: Legislation setting rules for commercial email marketing to combat spam.

Marketing Strategies

Promotional Mix: The variety of promotional tools and tactics a business utilizes to communicate with customers.
Publicity: Unpaid media exposure that creates a positive public impression of a business.
Loyalty Program: Strategies aimed at maintaining repeat customers through rewards and incentives.

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Description

Explore essential vocabulary related to retailing through these flashcards. Covering key terms such as market research and primary data, this quiz will enhance your understanding of the retail sector's language and concepts. Perfect for students and professionals alike.