VBM Retailing Vocabulary Flashcards

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.