Term
Which of the following statements about vending machines are NOT true?
-The largest % of sales of vending machines is from food and beverage (95%)
-The greatest sales are achieved through break and lunch rooms
-Cigarette sales account for 35% of vending machine sales. |
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Definition
| -CIGARETTE SALES ACCOUNT FOR 25% OF VENDING MACHINE SALES |
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Term
| A major advantage of direct marketing is the ablility of consumers to ________. |
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Definition
| Avoid crowds and parking congestion |
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Term
| Direct selling is NOT considered part of direct marketing since _______. |
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Definition
| a communication is used to initiate customer contact |
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| The most valuable asset of a highly profitable direct marketer is generally its ______. |
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Definition
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| The "30-day rule" requires direct marketers to ________. |
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Definition
| Ship orders within 30 days of receipt or notify customers of delays |
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Term
| A direct marketer can effectively cater to a highly specialized niche market through the use of a(n) ________. |
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Definition
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Term
| The promotional strategy of the Home Shopping Network (HSN) and QVC _______. |
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Definition
| Encourages consumers to act immediately |
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Term
| Infomercials are ideally suited for ________. |
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Definition
| Goods that are not widely available that require a demonstration |
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Term
| The use of party plans and group sales are strategies used by ______. |
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Definition
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Term
| A major factor contributing to the low level of sales on the web is _________. |
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Definition
| Consumer concern for security |
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Term
| Which nontraditional retailing has a temporary captive audience? |
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Definition
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Term
| Are vending machines considered retailing? |
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Definition
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Term
| Examples of direct marketing? |
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Definition
Print:
direct response ads
junk mail
post cards
letters brochures
Broadcast:
direct response ads
informercials
shopping channels |
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Term
| In comparison to demographics, psychographics are _________. |
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Definition
| more difficult to measure |
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Term
| A retailer seeking to sell luxury goods needs to evaluate which demographic statistic? |
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Definition
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Term
| A group of consumer has high class consciousness. What form of risk is most important to this group? |
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Definition
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Term
| Which lifestyle emphasizes the situation basis for much of consumer decision making? |
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Definition
| Component lifestyles (situation based) |
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Term
| A mapping analysis for a store shows that 30 percent of its customers drive over 45 minutes to visit the retailer. This high proportion of shoppers from a relatively far distance indicates which form of customer behavior? |
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Definition
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Term
| An example of recognition of shortage is a consumer ________. |
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Definition
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Term
| A consumer reading is more about a product after it was purchased than before illustrates ____________. |
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Definition
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Term
| What type of consumer decision making accompanies a situation where customers have purchased the product before, but do not purchase the product on a regular basis? |
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Definition
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Term
| Impulse purchases and brand loyalty are examples of ________. |
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Definition
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Term
| Which type of target market strategy is more likely to be used by a diverseified retailer? |
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Definition
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Term
| Buyer Behaviors based on 4 areas |
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Definition
Demographics
Psychographics
Needs/desires
Attitudes |
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Definition
Measurable and identifiable ways to segment the market up
able to profile people |
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Term
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Definition
-behaviors, values, and lifestyles are generally based upon your demographics
-lifestyles
-Internal and external influences such as social class and reference groups
Social class: tend to spend in the social class above us; we aspire to be one social calss above ourselves
---membership groups- want to be associated with or don't (dissociative)
Internal
-- perceived risk, financial or psychological, class consciousness |
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Definition
| A retailers job is to turn a cusomer's needs into desires |
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Definition
usage/beneifts sought
funcional vs. emotional |
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Definition
| Preventing outshipping/ keeping people here |
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Definition
| shop high end and thrift/ visit multiple retailers on the same visit |
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Term
| STEPS in decision making process |
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Definition
Stimulus/ need recognition
Info Search
Evaluation of Alternatives
Purchase
Post Purchase |
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Term
| Stimulus/ Need recognition |
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Definition
Internal: \
Hungry/ stomach growls
Thrity/ mouth dry
External:
Smell of food makes you hungry
bullboard image makes you want something
slogan |
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Term
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Definition
Look up which products will produce your needs
Internal- if you've had experience with something (brand) |
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Term
| Evaluation of Alternatives |
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Definition
Internal or external
Evoked Set: alternatives that best fulfills your wants and needs |
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Definition
| May experience cognitive dissonance |
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Definition
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Definition
| Some experience or not a lot |
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Definition
Brand loyalty
a lot of experience with brand |
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Term
| RIS- Retail Information Systems |
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Definition
Anticipates the information needs of retail managers
should be available to all functions of your business
-HR
-Finance/ accounting
-Marketing
-Products
Collects, organizes, and stores relevant data on a CONTINUOUS basis |
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Definition
| Data in and of itself is meaningless |
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Definition
| Reduced sales/ dip in sales |
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Definition
Uses data related to 3 areas:
Customers
Vendors/suppliers
Products
---Can be internal or external in terms of collecting information or where the data is located
Basket analysis: look at amt/average purcahse amount and what kinds of products are being purchased together |
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Term
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Definition
purchasing habits
profiling
psychographics
demographics |
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Term
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Definition
Purchasing in bulk
in season
lead time- from the time the buyer/ manager placed an order for product until it gets to the back door |
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Term
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Definition
-The library where you keep all of your information
-Clearing house for all data collected
-Should all be in one place so no matter what function you're at, you can pull out whatever you're looking for |
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Term
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Definition
Universal product codes
1st 5 digits are the vendor
next 5 are specific for the product |
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Term
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Definition
Point of Sale
What's the point of sale register/system
When you scan barcode it tells you tha tyou just purchased a particular product
Gets put back to the back room/home office or EDI |
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Definition
Electronic Data Interchange
Goes to vendor
All of the information exchange between retailer and supplier/vendor is done through computer |
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Definition
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Definition
Anyone can go into data and pull out numbers and make sense of things
analyzing and looking for trends |
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Definition
Radio Frequencey Identification
Has computer chip in tag and can track merchandise from production to waste state
ex. tracking razors to see how long in bathroom before it's thrown away
Using more for marketing and inventory control |
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Term
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Definition
links the consumer/public to the marketer through information
Infor used to identify problems and opportunities
SWOT- Strengths, weaknessess, opportunities, threates
--internal: SW
--External: OT |
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Term
| Secondary research/ exploratory research |
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Definition
| Cheaper, already there, could be internal or external |
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Term
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Definition
Conducting research
Looking for things not out there right now
More Expensive
Gathering data specific to issue at hand
Survey
--asking questions in person, email, paper, online, telephone, mail, etc.
Observation
--Mystery shoppers
--Disguised or not disguised
Experiment
-- The changing of elements to see effects produced
Simulation |
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Term
| Nontraditional Retailers have/don't have bricks and mortars? |
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Definition
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Term
| Direct marketers can be divided up into which 2 categories? |
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Definition
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Term
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Definition
Personal Sales
We DON'T include it under direct marketing due to the fact that a big part of the definitino for direct marketing is that it is nonpersonal (and direct/ personal sales is obviously personal). Remember that this can be face-to-face or by phone and it also includes party plans |
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Term
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Definition
| A customer is first exposed to a good or service through a nonpersonal medium such as direct, mail, tv, radio, magazine, newspaper and computer and then orders by mail, phone, or fax, and increassingly by computer |
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Term
| General direct marketing firms offer: |
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Definition
a full line of products and sell everything from clothing to housewares
JC Penney (mail-order and web business)
QVC (cable TV and web businesses) |
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Term
| Specialty direct marketers focus on: |
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Definition
more narrow product lines
LL Bean, Publishers Clearinghouse, Franklin Mint |
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Term
| Direct Marketing Strategic Advantages |
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Definition
-Many costs are reduced-low startup costs are possible
-it is possible for direct marketers to have lower prices
-customers shop conveniently- without crowds, parking congestion, or checkout lines
-specific consumer segments are pinpointed through targeted mailings
-consumers may sometimes avoid sales tax
-A store based firm can supplement its regular businesses and expand trading area |
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Term
| Direct Marketing Disadvantages |
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Definition
Products cannot be examined before purchase
-firms may underestimate costs.
-Even successful catalogs often draw purchases from less than 10% of recipients
-Clutter exists
-Printed catalogs are prepared well in advance, causing difficulties in price and style planning
-some firms have given the industry a bad name due to delivery delays and shoddy goods |
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Term
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Definition
retailers cater to a particular customer segment, emphasizes a limited number of items, and reduces production and postage costs.
Spiegel, LL Bean, Travelsmith |
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Term
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Definition
includes both personal contact with customers in their home/office and phone solicitations initiated by a retailer.
Cosmetics, jewelry, vitamins, household goods and services, vacuum cleaners, magazines, newspapers, etc
Emphasizes convenient shopping and a personal touch, and detailed demonstrations can be made. |
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Term
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Definition
Cash or card operated retailing format that dispenses goods and services.
Allows 24 hour sales
95% of the $50 Bilion in annual US vending machine sales involve hot and cold beverages and food items. |
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Term
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Definition
| Accounts for only 3-4 percent of US retail sales |
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Term
| Characteristics of Web Users |
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Definition
Gender and age: females shop more often, 18-30 years old most likely, 72+ least likely
Average time online: typical web user spends 14 hours per week on the web
Income and education: 3/5ths of household with annual income under $40,000 use the web, in contrast, 91% of households with annual income of at least $40,000 use the web. Those who have attended college are more likely to use the internet as those who have not attended college
What shoppers have researched: well over 1/2 of web users research holidays/destinations, consumer electronics, and portable devices online
web-influenced store sales: by 2012 it is expected the web will stimulate more than $1.1 trillion of in-store sales annually. |
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Term
| Key factors to online shopper's patronage |
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Definition
Website design/ interaction
Fulfillment//reliability
Customer service
Security/privacy |
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Term
| Again, remember to take a look at the advantages/disadvantages with each type of retailer and also the trends for each one. SOME TRENDS THAT ARE COMMON TO ALL: |
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Definition
1. technology permeates all parts
2. consumers are time-starved
3. competition is increasing
4. move toward global retailing
5. increase in multi-channel retailing |
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Term
| Key to successful direct marketing |
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Definition
| is the customer data base, with data-base retailing being a way to collect, store,a dn use relevant information. Several trends are vital to direct marketers: their attitudes and activities, changing consumer lifestyles, increased competition, and use of dual distribution, the roles for catalogs and TV, technological advances, and the growth in global direct marketing. |
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Term
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Definition
| Money left after paying taxes and buying necessities |
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Term
| Psychological factors to help understand consumer lifestyles |
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Definition
Personality
Class consciousness
Attitudes/opinions
Perceived risk |
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Term
| Steps of the Decision Making Process |
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Definition
1. stimulus
2. Problem awareness
3. Information search
4. Evaluation of Alternatives
5. Purchase
6. Post-Purchase Behavior |
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Term
| Extensive decision making |
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Definition
occurs when a consumer makes full use of the decision process. Lots of time is spent gathering info and evaluating alternatives.
Expensive, complex items with which the person has had little or no experience. |
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Term
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Definition
a consumer uses each step in the purchase process but does not spend a great deal of time on each of them.
Less time than extended
has had some experience with both the what and the where of the purchase |
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Term
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Definition
Takes place when the consumer buys out of habit and skips steps in the purchase proess.
items are bought regularly; little risk |
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Term
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Definition
| a person regularly patronizes a particular retailer (store or nonstore) that he or she knows, likes, and trusts |
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Term
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Definition
| a retailer tailors its strategy to the needs of one distinct customer group, such as young woking women; it does not attempt to satisfy people outside that segment |
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Term
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Definition
| a retailer aims at two or more distinct customer groups, such as men and boys, with a different strategy for each; it can do this by operating more than one kind of outlet or by having distinct departments grouped by market segment in a single store |
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Term
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Definition
| a firm such as a supermarket or drugstore sells to a brad spectrum of consumers; it does not really focus efforts on any one kind of customer |
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Term
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Definition
retail information strategy
anticipates the information needs of retail managers; colelcts, organizes, and stores relevant data on a continuous basis; and directs the flow of information to the proper decision makers. |
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