CTE 3806
Terms
undefined, object
copy deck
- Feature areas
- are those areas within a store designed to get the customer's attention.
- A tying contract
- exists when a vendor requires a retailer to take a product it doesn't necessarily desire (the tied product) to ensure that it can buy a product it does desire (the tying product).
- Slotting allowances (slotting fees)
- are charges imposed by retailer to stock an item.
- Four factors retailers consider in setting retail prices are:
- 1.The price sensitivity of consumers.2.The cost of the merchandise and services3.Competition4.Legal Restrictions
- Price Discrimination
- by retailers occurs when a retailer chargers different prices for the identical products and/or services sold to different customers
- Second-degree price discrimination
- offer the same price schedule to all customers but require that customers do something to get the lower price-something that discourages customers with a high willingness to pay to take advantage of the lower price. Ex. Clearance, coupons and rebates, bundling, and multiunit pricing
- Private Label Brands
- are products developed and managed by retailers. Sold only in their store.
- Horizontal Price Fixing
- involves agreements between retailers that are in direct competition with each other to set the same prices.
- Zone Pricing
- refers to the practice of charging different prices in different stores, markets, regions, or zones.
- Labor Scheduling
- determining the number of employees assigned to each area of the store, is difficult because of the multiple shifts and part-time workers needed to staff stores 12 hours a day, seven days a week
- Shrinkage
- is the difference between the recorded value of inventory (at retail prices) based on merchandise bought and received and the value of the actual inventory (at retail prices) in stores and distribution centers divided by retail sales during the period.
- Store Maintenance
- entails the activities involved with managing the exterior and interior physical facilities associated with the store.
- Capacity Fixture
- be able to hang and fold the merhandise (usually vendor made)
- Everyday Low Pricing
- this strategy emphasizes the continuity of retail prices at a level somewhere between the regular nonsale price and the deep-discount sale price of the high/low retailer.
- Price Bundling
- is the practice of offering tow or more different products or services for sale at one point. Ex Subway meal deal.
- Employee Training
- employees need to be aware, visible, and alert
- Extrinsic Rewards
- are rewards provided by either the employee's manager of the firm, such as compensation, promotion and recognition
- Leadership
- the process by which one person attempts to influence another to accomplish some goal or goals.
- Order Point
- the amount of inventory below which the quantity available shouldn't go or the item will be out of stock.
- Special Security Numbers
- EAS systems (electronic article surveillance) special tags are placed on the merchandise& prosecution
- Strengths and Weaknesses of Communication Methods
- Control, Flexibility, Credibility, Cost
- Fixtures-Free Standing/Cube Systems
- organized by colors of rainbow,size,3/4 length fold jeans/pants,towels lightest to darkest and w/colors,make sure you can fill it up
- Licensed Brands
- are brands for which the owner of a well-known brand name (licensor) enters into a contract with a licensee to develop, produce, and sell the branded merchandise.
- Transformational Leaders
- get people to transcend their personal needs for the sake of the group or organization. They create excitement.
- Category Signage
- identify products
- Multiple Unit Pricing
- are similar to price bundling in that the lower total merchandise price increases sales, but the products or services are similar rather than different. Grocery stores may say buy two for $5, where the unit price $2.95
- Autocratic
- make all decisions on their own and then announce them to employees. They use their authority of their position to tell employees what to do.
- Price Lining
- Retailers frequently offer a limited number of predetermined price points within a merchandise category. Ex. $69.99, $89.99, and $129.99
- Job Application Form
- contains information about the applicant's employment history, previous compensation, reasons for leaving his or her previous employment, education and training, personal health, and references.
- Lead Time
- the amount of time it between the recognition that an order needs to be placed and the point at which the merchandise arrives at the store.
- Fill Rate
- the percentage of complete orders received from a vendor.
- Location
- provide directions, help locate merchandise
- Loses due to shoplifting can be reduced by
- Store Design, Employee Training, Special Security Numbers
- Feature Areas include:
- Freestanding displays,endcaps,Promotional aisles/areas,windows,cash wraps,Point-of-Sale areas,Walls
- A chargeback
- is a practice used by retailers in which they reduce money from the amount they owe a vendor.
- Quad or 4 Way
- Found in back of the department store by the rounders, always has to be opposite, organized by size, don't want to have too much, no more thatn 2 hangers per robe.
- Commercial Bribery
- occurs when a vendor or its agent offers or a buyer asks for "something of value" to influence purchase decisions.
- job analysis
- identifies essential activities and is used to determine the qualifications of potential employees.
- Resident Buying Offices
- are organizations located in major market centers that provide services to help retailers buy merchandise
- Store Design
- security issues need to be considered when placing merchandise near store entrances and dressing rooms should be visible to employees
- Keystoning
- to set the retail price by simply doubling the cost of the item.
- Staple merchandise planning systems
- provide the information needed to determine how much to order and when to place orders for SKUs.
- Democratic
- seeks information and opinions from employees and bases his or hers decisions on this information. They share their power and information with their employees.
- High/Low
- Retailers that frequently -often weekly- discount the initial prices for merchandise through frequent sales promotions.
- Cycle stock or base stock
- inventory that goes up and down.
- Planogram
- is a diagram that show how and where specific SKUs should be placed on retail shelves or displays to increase customer purchases..***In developing the planogram, retailers need to make the category visually appealing, consider the manner in which customers shop and achieve the retailer's strategic and financial objectives.
- Leader Pricing
- involves a retailer pricing certain items lower than normal to increase customers' traffic flow or boost sales of complementary products.
- Job Discription
- includes (1) activities the employee needs to perform and (2) the performance expectations expressed in quantitative terms.
- Markup
- the difference between the retail price and the cost of an item.
- Intrinsic Rewards
- are rewards employees get personally from doing their job well
- Buying National Brand Merchandise
- **Meeting with vendors (go to market)**Visit market week**Go to Trade Shows**Buying from vendors of national brands can help retailers build their image and traffic flow and reduce their selling/promotional expenses
- Buybacks (stocklifts/ lift-outs)
- are activities engaged in by vendors and retailers to get products into retail stores.
- Promotional Signage
- describe special offers (usually in windows)
- Unpaid Impersonal Communications
- Publicity
- Negotiating with Vendors
- Knowledge is power, Choose a neutral place to negotiate, Have equal sides of people, Be aware of real deadlines,Separate people from the problem, know how far to go,don't burn bridges,don't assume
- Allocating merchandise to stores involves three decisions:
- How much merchandise to allocate to each store**What type of merchandise to allocate to the store**When to allocate the merchandise to the stores
- Leader Decision Making
- Autocratic, Democratic & Transformational leaders
- Old Pricing
- refers to the practice of using a price that ends in an odd number, typically a 9.
- third-degree price discrimination
- Retailers often charge different prices to different demographic market segments. Example: Movie tickets for senior citizens or children
- Internet/Retail exchanges
- are providers of Internet-based solutions and services for retailers.
- Lifestyle images
- encourages moods, and purchasing of products
- Atmospherics
- refers to the design of an environment through visual communications, lighting, colors, and scent to stimulate customers' perceptual and emotional responses and ultimately to affect their purchase behavior.
- Paid Personal Communications:
- Personal Selling & E-mailing
- Key Merchandising strategies include
- Color,atmospherics,unity,harmony,repetition,balance rythm (movement),Contrast,emphasis,surprise
- Socialization
- is the set of steps taken to transform new employees into effective, committed members of the firm.
- Job Enrichment
- is the redesign of a job to include a greater range of tasks and responsibilities. & Contests
- merchandise budget plan
- systems for managing fashion merchandise categories, It specifies the planned inventory investment in dollars in a fashion merchandise category over time.
- Backup stock or buffer stock-
- is a cushion so it doesn't stock out before the next order arrives.
- Paid Impersonal Communications
- Advertising, Sales Promotions: contests, coupons, store atmosphere, web sites
- Exclusive dealing agreements
- occur when a vendor restricts a retailer to carrying only its product and nothing from competing vendors.
- Brand Association
- are anything to or connected with the brand name in a consumer's memory.
- Recognition
- is another important nonmonetary extrinsic reward for many employees. This can include public recognition.
- Predatory Pricing
- arises when a dominant retailer set prices below its costs to drive competitive retailers out of business.
- Brand Equity
- the add value that a brand image offers.
- Visual Merchandising
- is the presentation of a store and its merchandise in ways that will attract the attention of potential customers.
- Brand
- is a distinguishing name or symbol, such as a logo, that identifies the products or services offered by a seller and differentiates those products and services from the offerings of competitors.
- Value
- is the ratio of what customers receive (the perceived benefit of the products and services offered by the retailer) to what they have to pay for it.**Value= perceived benefit/price.
- National Brands
- are produced, manufactured, designed and marketed by a vendor and sold to many different retailers.
- Concept/Gondola Fixture
- used to hold entire line of something, find anything that you can find a sizeable amount of, can do a display.Ex.Langeri
- Rounder
- have different sizes, color, used for staple merchandise, clearance, broken assortments to rounders, have to be organize, do it by size hemline, and sleeve length
- Point of sale
- identify checkouts
- Staple merchandise planning systems assist buyers by performing three function:
- **Monitoring and measuring current sales for items at the SKU level.**Forecasting future SKU demand with allowances made for seasonal variations and changes in trends**Developing ordering decision rules for optimum restocking
- Store Layouts
- Grid, Race Track, Free-forms: Other types include soft aisle and combination.
- Resale Price Maintenance (RPM)
- is a requirement imposed by a vendor that a retailer cannot sell an item for less than a specific price- the manufacturer's suggested retail price (MSRP).
- Markdown
- are price reductions or discounts from the initial retail price.
- Unpaid Personal Communications
- Word of Mouth
- Store Management Responsibilities
- 1. Managing Employees 2.Controlling Costs 3.Managing merchandise presentation 4. Providing Customer Service
- Brand Awareness
- is the ability of a potential customer to recognize or recall that the brand name is a type of retailer or product/service.
- Reverse Auctions
- because there is one buyer, the retailer, and, many potential sellers, the manufacturing firms.
- a la carte plans
- that gives effective employees a choice of rewards for their good performance. Ex. Cash bonus, better discount.
- first-degree price discrimination
- Charging each individual customer a different price based on their willingness to pay, Example: Online Auctions
- Two Way or T-Stand
- Need to makesure that merchendise never touches the floor, merchandise arranged by vendor style, and size. Found in walk way and can dress it up by using a henri hanger.
- Training Store Employees
- Structured Programs, On the Job Trainng, Computers