Part 2 book “Retail management - A strategic approach” has contents: Retail organization and human resource management, developing merchandise plans, implementing merchandise plans, financial merchandise management, establishing and maintaining a retail image, promotional strategy,… and other contents.
www.downloadslide.com Part Managing a Retail Business Source: nasirkhan/Shutterstock Reprinted by permission In Part Five, the elements of managing a retail enterprise are discussed We first look at the steps in setting up a retail organization and the special human resource management environment of retailing Operations management is then examined—from both financial and operational perspectives Chapter 11 reports how a retailer can use its organizational structure to assign tasks, policies, resources, authority, responsibilities, and rewards to satisfy the needs of the target market, employees, and management We also show how human resource management can be applied so that the structure works properly Human resource management consists of recruiting, selecting, training, compensating, and supervising personnel Chapter 12 focuses on the financial dimensions of operations management in enacting a retail strategy We discuss these topics: profit planning, asset management (including the strategic profit model, other key ratios, and financial trends in retailing), budgeting, and resource allocation Chapter 13 presents the operational aspects of operations management We cover these specific concepts: operations blueprint; store format, size, and space allocation; personnel utilization; store maintenance, energy management, and renovations; inventory management; store security; insurance; credit management; computerization; and crisis management M11A_BERM4672_13_GE_P05.indd 291 5/19/17 9:03 AM www.downloadslide.com 11 Retail Organization and Human Resource Management Chapter Objectives To study the procedures involved in setting up a retail organization To examine the various organizational arrangements utilized in retailing To consider the special human resource environment of retailing Superior human resource management in retailing not only requires that a firm hire and train good employees but the firm must also keep them motivated With the high employee turnover rate in retailing, this is not an easy task One estimate is that the cost of replacing a $10 per hour retail employee averages more than $3,300.1 Since the turnover rate among some retailers can easily exceed 70 percent per year, costs related to employee turnover can amount to a very large expenditure Strategies a retailer can use to reduce turnover among low-wage employees include: ▶▶ ▶▶ ▶▶ Promote from within This rewards long-time employees In addition, it lets short-term employees directly observe role models who have advanced to managerial positions Be understanding Grant exceptions to occasional lateness or absenteeism if there is good cause (sickness, family crisis, etc.) Make the job relevant to company goals Show employees the value of short waiting lines, clean facilities, and customer-service–centric employees To describe the principles and practices involved with the human resource management process in retailing Source: S.john/Shutterstock Reprinted by permission 292 M11B_BERM4672_13_GE_C11.indd 292 5/19/17 9:03 AM www.downloadslide.com CHAPTER 11 • Retail Organization and Human Resource Management ▶▶ ▶▶ 293 Minimize boredom by rotating jobs Stockroom persons could work the cash registers at busy times or assist elderly or infirm customers with their packages Invest in training Make sure the trainer respectfully instructs and corrects the new employee Overview Managing a retail business comprises three steps: setting up an organization structure, hiring and managing personnel, and managing operations—financially and nonfinancially The first two steps of this procedure are covered in this chapter. Chapters 12 and 13 deal with operations management SETTING UP A RETAIL ORGANIZATION Through a retail organization, a firm structures and assigns tasks (functions), policies, resources, authority, responsibilities, and rewards to efficiently and effectively satisfy the needs of its target market, employees, and management Figure 11-1 shows various needs that should be taken into account when planning and assessing an organization’s structure As a rule, a firm cannot survive unless its organization structure satisfies the target market, no matter how well employee and management needs are met A structure that reduces costs FIGURE 11-1 Selected Factors That Must Be Considered in Planning and Assessing a Retail Organization TARGET MARKET NEEDS Are there sufficient personnel to provide appropriate customer service? Are personnel knowledgeable and courteous? Are store facilities well maintained? Are the specific needs of branch store customers met? Are changing needs promptly addressed? EMPLOYEE NEEDS Are positions challenging and satisfying enough? Is there an orderly promotion program from within? Is the employee able to participate in the decision making? Are the channels of communication clear and open? Is the authority-responsibility relationship clear? Is each employee treated fairly? Is good performance rewarded? MANAGEMENT NEEDS Is it relatively easy to obtain and retain competent personnel? Are personnel procedures clearly defined? Does each worker report to only one supervisor? Can each manager properly supervise all the workers reporting to him or her? Do operating departments have adequate staff support (e.g., marketing research)? Are the levels of organization properly developed? Are the organization’s plans well integrated? Are employees motivated? Is absenteeism low? Is there a system to replace personnel in an orderly manner? Is there enough flexibility to adapt to changes in customers or the environment? M11B_BERM4672_13_GE_C11.indd 293 5/19/17 9:03 AM www.downloadslide.com 294 PART 5 • MANAGING A RETAIL BUSINESS FIGURE 11-2 The Process of Organizing a Retail Firm Outlining the specific tasks to be performed in a retail distribution channel Dividing the tasks among channel members and customers Grouping the retailer’s tasks into jobs Classifying jobs Integrating positions through an organization chart via centralized buying but leads to a firm’s insensitivity to geographic differences in customer preferences will lose market share Although many retailers perform similar tasks (buying, pricing, displaying, and wrapping merchandise), there are many ways of organizing to conduct these functions The process of setting up a retail organization, shown in Figure 11-2, is described next Specifying Tasks to Be Performed The tasks in a distribution channel must be enumerated and then keyed to the chosen strategy mix for effective retailing to occur: ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ Buying merchandise on behalf of the retailer Shipping merchandise to the retailer Receiving merchandise and checking incoming shipments Setting prices and marking merchandise Inventory storage and control Preparing merchandise and window displays Facilities maintenance (e.g., keeping the store clean) Customer research and exchanging information Customer contact (e.g., Web site, personal selling) Facilitating shopping (e.g., convenient location, short checkout lines) Customer follow-up and complaint handling Personnel management Repairs and alteration of merchandise Billing customers and credit operations Handling receipts and financial records Gift wrapping Delivery to customers (e.g., multichannel or omnichannel retailing) Returning unsold or damaged merchandise to vendors Sales forecasting and budgeting Coordination Dividing Tasks among Channel Members and Customers Sysco is a wholesaler serving 425,000 restaurants, hotels, schools, and other locales It offers them a wide range of support services (www.sysco.com/ customer-solutions.html) Although the preceding tasks are typically performed in a distribution channel, they not all have to be done by a retailer Some can be completed by the manufacturer, wholesaler, specialist, or consumer Figure 11-3 shows the types of activities that could be carried out by each party Following are some criteria to consider in allocating the functions related to consumer credit ▶▶ ▶▶ ▶▶ M11B_BERM4672_13_GE_C11.indd 294 A task should be done by the person who is most competent, and it should be carried out only if desired by the target market For some retailers, liberal credit policies may provide significant advantages over competitors For others, a cash-only policy may reduce their overhead and lead to lower prices Credit collection may require a legal staff and detailed digitized records—most affordable by medium or large retailers Smaller retailers are likely to rely on bank credit cards 5/19/17 9:04 AM www.downloadslide.com CHAPTER 11 • Retail Organization and Human Resource Management FIGURE 11-3 The Division of Tasks in a Distribution Channel ▶▶ ▶▶ ▶▶ Performer Tasks Retailer Can perform all or some of the tasks in the distribution channel, from buying merchandise to coordination Manufacturer or Wholesaler Can take care of few or many functions, such as shipping, marking merchandise, inventory storage, displays, research, etc Specialist(s) Can undertake a particular task: buying office, delivery firm, warehouse, marketing research firm, ad agency, accountant, credit bureau, computer service firm Consumer Can be responsible for delivery, credit (cash purchases), sales effort (self-service), product alterations (do-it-yourselfers), etc 295 There is a loss of control when an activity is delegated A credit collection agency, pressing for past-due payments, may antagonize customers The retailer’s institutional framework can affect task allocation Franchisees are readily able to get together to have their own private-label brands Independents cannot this as easily Task allocation depends on the savings gained by sharing or shifting tasks The credit function is better performed by an outside credit bureau if it has expert personnel and ongoing access to financial data, uses tailored computer software, pays lower rent (due to an out-of-the-way site), and so on Many retailers cannot attain these savings themselves Grouping Tasks into Jobs This site (www thebalance.com/retail-jobsearch-4073851) highlights the range of jobs available in retailing After the retailer decides which tasks to perform, they are grouped into jobs The jobs must be clearly structured Here are examples of grouping tasks into jobs: Tasks Jobs Displaying merchandise, customer contact, gift wrapping, customer follow-up Sales personnel Entering transaction data, handling cash and credit purchases, gift wrapping Cashier(s) Receiving merchandise, checking incoming shipments, marking merchandise, inventory storage and control, returning merchandise to vendors Inventory personnel Window dressing, interior display setups, use of mobile displays Display personnel Billing customers, credit operations, customer research Credit personnel Merchandise repairs and alterations, resolution of complaints, customer research Customer service personnel Cleaning store, replacing old fixtures Janitorial personnel Employee management, sales forecasting, budgeting, pricing, coordinating tasks Management personnel While grouping tasks into jobs, specialization should be considered so each employee is responsible for a limited range of functions (as opposed to performing many diverse tasks) Specialization has the advantages of clearly defined tasks, greater expertise, reduced training, and M11B_BERM4672_13_GE_C11.indd 295 5/19/17 9:04 AM www.downloadslide.com 296 PART 5 • MANAGING A RETAIL BUSINESS ETHICS IN RETAILING Zero-Hour Contracts According to the UK Office of National Statistics, the number of UK workers on zero-hour contracts increased by 20 percent in 2016 to just over 900,000 This represents nearly percent of the employed UK workforce The zero-hour contract workers are not offered guaranteed hours or sick pay Retailers are amongst those most likely to offer their employees zero-hour contracts On average, the retailer workers work for around 25 hours per week However, over 30 percent of them would like to work longer and more predictable hours if they were given the option The British Retail Consortium claims that zero-hours contracts are not widely used in the retail sector but that certain chains and brands only use this form of employment Why might a retailer opt for zero-hour contracts? What advantages does it offer them? hiring people with narrow education and experience Problems can result due to extreme specialization: poor morale (boredom), people not being aware of their jobs’ importance, and the need for more employees Specialization means assigning explicit duties to individuals so a job position encompasses a homogeneous cluster of tasks Once tasks are grouped, job descriptions are constructed These outline the job titles, objectives, duties, and responsibilities for every position They are used as a hiring, supervision, and evaluation tool Figure 11-4 contains a job description for a store manager Classifying Jobs Jobs are then broadly grouped into functional, product, geographic, or combination classifications Functional classification divides jobs by task—such as sales promotion, buying, Web design, and store operations Expert knowledge is used Product classification divides jobs on a goods or service basis A department store hires different personnel for clothing, furniture, appliances, and so forth This classification recognizes differences in personnel requirements for different products Geographic classification is useful for chains operating in different areas Employees are adapted to local conditions, and they are supervised by branch managers Some firms, especially larger ones, use a combination classification If a branch unit of a chain hires its selling staff, but buying personnel for each product line are hired by headquarters, the functional, product, and geographic formats are combined Developing an Organization Chart The format of a retail organization must be designed in an integrated, coordinated way Planning leaders in the organization need to clearly articulate accountability and decision-making authority for each position or role on the organizational chart, span of control (number of subordinates FIGURE 11-4 A Job Description for a Store Manager JOB TITLE: Store manager for 34th Street Branch of Pombo’s Department Stores POSITION REPORTS TO: Senior vice-president POSITIONS REPORTING TO STORE MANAGER: All personnel in the 34th Street store OBJECTIVES: To properly staff and operate the 34th Street store DUTIES AND RESPONSIBILITIES: • Sales forecasting and budgeting • Personnel recruitment, selection, training, motivation, and evaluation • Merchandise display, inventory management, and merchandise reorders • Transferring merchandise among stores • Handling store receipts, preparing bank transactions, opening and closing store • Reviewing customer complaints • Reviewing computer data forms • Semi-annual review of overall operations and reports for top management COMMITTEES AND MEETINGS: • Attendance at monthly meetings with senior vice-president • Supervision of weekly meetings with department managers M11B_BERM4672_13_GE_C11.indd 296 5/19/17 9:04 AM www.downloadslide.com CHAPTER 11 • Retail Organization and Human Resource Management 297 under a manager’s direct control) for each position, and lateral relationships between positions Aligning individual employee goals with organizational goals and communicating to employees how the organizational structure will meet strategic objectives and goals and create sustained economic value is key Managers and their direct reports must jointly identify common goals, define each individual’s responsibilities and expectations, and understand how they will be evaluated Joint goal setting and shared responsibility toward achieving them will increase employee motivation and perceived empowerment, and provide a common direction toward achievement of organizational goals The hierarchy of authority outlines the job interactions within a company by describing the reporting relationships among employees (from lowest level to highest level) Coordination and control are provided by this hierarchy A firm with many workers reporting to one manager has a flat organization Its benefits are good communication, quicker problem handling, and better employee identification with a job The major problem tends to be the number of people reporting to one manager A tall organization has several management levels, resulting in close supervision and fewer workers reporting to each manager Problems include a long communication channel, the impersonal impression given to workers regarding access to upper-level personnel, and inflexible rules With these factors in mind, a retailer devises an organization chart, which graphically displays its hierarchical relationships Table 11-1 lists the principles to consider in establishing an organization chart Figure 11-5 shows examples of basic organization charts ORGANIZATIONAL PATTERNS IN RETAILING An independent retailer has a simple organization It operates only one store, the owner/manager usually supervises all employees, and workers have access to the owner/manager if there are problems In contrast, a chain must specify how tasks are delegated, coordinate multiple stores, and set common policies for employees As examples, the organizational arrangements used by independent retailers, department stores, chain retailers, and diversified retailers are discussed next Organizational Arrangements Used by Small Independent Retailers Small independents use uncomplicated arrangements with only two or three levels of personnel (owner/manager and employees), and the owner/manager personally runs the firm and oversees workers There are few employees, little specialization, and no branch units This does not mean fewer activities must be performed but that many tasks are performed relative to the number of workers Each employee must allot part of his or her time to several duties Figure 11-6 shows the organizations of two small firms In A, a boutique is organized by function Merchandising personnel buy and sell goods and services, plan assortments, set up displays, TABLE 11-1 Principles for Organizing a Retail Firm An organization should show interest in its employees This can be done through job rotation, promotion from within, participatory management, recognition, job enrichment, and so forth Employee turnover, lateness, and absenteeism should be monitored, because they may indicate personnel problems The line of authority should be traceable from the highest to the lowest positions In this way, employees know to whom they report and who reports to them (chain of command) A subordinate should report to only one direct supervisor (unity of command) This avoids the problem of workers receiving conflicting orders There is a limit to the number of employees a manager can directly supervise (span of control) A person responsible for a given objective needs the power to achieve it Although a supervisor can delegate authority, he or she is still responsible for subordinates The greater the number of organizational levels, the longer the time for communication to travel and the greater the coordination problems An organization has an informal structure aside from a formal organization chart Informal relationships exercise power in the firm and may bypass formal relationships and procedures M11B_BERM4672_13_GE_C11.indd 297 5/19/17 9:04 AM www.downloadslide.com 298 PART 5 • MANAGING A RETAIL BUSINESS FUNCTIONAL ORGANIZATION CHART Sales promotion manager Vice-president Merchandise manager Personnel manager PRODUCT ORGANIZATION CHART Omnichannel manager Appliance manager Store manager Location C Store manager Location D Vice-president Store manager Location A Store manager Location B COMBINATION ORGANIZATION CHART Manager Location B Lingerie manager Ladies’ outerwear manager GEOGRAPHIC ORGANIZATION CHART Manager Location A Controller Store manager Men’s outerwear manager Sales promotion manager Store operations manager Vice-president Merchandise manager Manager Location A Manager Location B Personnel manager Manager Location A Manager Location B Men’s outerwear manager Store operations manager Manager Location A Manager Location B Controller Manager Location A Manager Location B Omnichannel manager Logistics manager Online manager Ladies’ outerwear manager FIGURE 11-5 Different Forms of Retail Organization and prepare ads Operations personnel are involved with store maintenance and operations In B, a furniture store is organized on a product-oriented basis, with personnel in each category responsible for selected activities All products get proper attention, and some expertise is developed This is important because different skills are necessary to buy and sell each type of furniture Organizational Arrangements Used by Department Stores Many department stores continue to use an organizational arrangement that is an adaptation of the Mazur plan, which divides all retail activities into four functional areas.2 In twenty-first century terms, these are store management, communications, merchandising, and financial accounting Figure 11-7 shows the modern version of the Mazur plan, as devised by the authors of this book: Store management: Operations, customer service, human resources, inventory, “backroom” activities, and store maintenance Communications: Public relations, advertising, window and interior displays, promotions, and online efforts M11B_BERM4672_13_GE_C11.indd 298 5/19/17 9:04 AM www.downloadslide.com 299 CHAPTER 11 • Retail Organization and Human Resource Management FIGURE 11-6 Organization Structures Used by Small Independents A Organization Chart for a Ladies' Clothing Boutique Owner-manager Merchandising personnel Operations personnel B Organization Chart for a Furniture Store Bedroom furniture personnel Owner-manager Living room furniture personnel Dining room furniture personnel Furniture rental personnel Merchandising: Buying, selling, stock planning and forecasting, and product-positioning (image-related) with regard to the mix of goods and services offered by the retailer Financial accounting (overseen by controller): Accounting, inventory control, credit, and auditing These areas are organized into line (direct authority and responsibility) and staff (advisory and support) components Thus, in Figure 11-7, the omnichannel manager reports directly to the Store President Omnichannel Manager Merchandising Manager Audit Manager Credit Manager Stockpeople Salespeople Buyers—by Product Line Controller Accounting Manager Divisional Merchandisers Online Manager Promotions Manager Display Manager Advertising Manager Maintenance Manager Backroom Manager Inventory Manager Human Resources Manager Customer Service Manager Operations Manager Assistant Store Managers Public Relations Manager Communications Manager Store Manager Inventory Control Manager General Manager FIGURE 11-7 A Modern Version of the Mazur Organizational Plan for Department Stores Source: Chart developed by the authors M11B_BERM4672_13_GE_C11.indd 299 5/19/17 9:04 AM www.downloadslide.com 300 PART 5 • MANAGING A RETAIL BUSINESS general manager and is a staff person; and a controller and a communications manager often staff services for merchandisers; but in their disciplines, personnel are organized on a line basis The merchandising division is responsible for buying and selling It is headed by a merchandising manager, who is often viewed as the most important of the area executives She or he supervises buyers, devises financial goals for each department, coordinates merchandise plans (so there is a consistent image among departments), and interprets the effects of economic data In some cases, divisional merchandise managers are utilized, so the number of buyers reporting to a single manager does not become unwieldy In the basic Mazur plan, the buyer has complete accountability for expenses and profit goals within a department Duties include preparing preliminary budgets, studying trends, negotiating with vendors over price, planning the number of salespeople, and informing sales personnel about the merchandise purchased Grouping buying and selling activities into one job (buyer) may present a problem Because buyers are not constantly on the selling floor, training, scheduling, and supervising personnel may suffer Branch store growth has led to three Mazur plan derivatives: main store control, by which headquarters executives oversee and operate branches; separate store organization, by which each branch has buying responsibilities; and equal store organization, by which buying is centralized and branches become sales units with equal operational status The latter is the most popular format In the main store control format, most authority remains at headquarters Merchandise planning and buying, advertising, financial controls, store hours, and other tasks are centrally managed to standardize the performance Branch store managers hire and supervise employees, but daily operations conform to company policies This works well if there are few branches and the preferences of customers are similar to those at the main store As branch stores increase, buyers, the advertising manager, and others may be overworked and give little attention to branches Because headquarters personnel are not at the branches, differences in customer preferences may be overlooked The separate store format places merchandise managers in branches, which have autonomy for merchandising and operations Customer needs are quickly noted, but task duplication is possible Coordination can also be a problem Transferring goods between branches is more complex and costly This format is best if stores are large, branches are dispersed, and/or local customer tastes vary widely In the equal store format, the benefits of both centralization and decentralization are sought Buying—forecasting, planning, purchasing, pricing, distribution to branches, and promotion—is centralized Selling—presenting merchandise, selling, customer services, and operations—is managed locally All stores, including headquarters, are treated alike Buyers are freed from managing so many workers Data gathering is critical since buyers have less customer contact Organizational Arrangements Used by Chain Retailers Various chain retailers use a version of the equal store organization, as depicted in Figure 11-8 Although chains’ organizations may differ, they generally have these attributes: ▶▶ ▶▶ ▶▶ ▶▶ ▶▶ There are many functional divisions, such as merchandise management, distribution, omnichannel, operations, real-estate, personnel, information systems, and sales promotion Overall authority is centralized Store managers have selling responsibility Many operations are standardized (fixtures, store layout, building design, merchandise lines, credit policy, and store service) An elaborate control system keeps management informed Some decentralization lets branches adapt to locales and increases store manager responsibilities Although large chains standardize most items their outlets carry, store managers often fine-tune the rest of the strategy mix for the local market This empowers the store manager Organizational Arrangements Used by Diversified Retailers To discover more about Kroger, go to this section of its Web site (www thekrogerco.com/ about-kroger/operations) M11B_BERM4672_13_GE_C11.indd 300 A diversified retailer is a multi-line firm operating under central ownership Like other chains, a diversified retailer operates multiple stores; unlike typical chains, a diversified firm is involved with different types of retail operations Here are two examples: ▶▶ Kroger Co (www.kroger.com) operates supermarkets, warehouse stores, supercenters, convenience stores, and jewelry stores; it also has a manufacturing group The firm owns multiple store chains in each of its retail categories See Figure 11-9 5/19/17 9:04 AM www.downloadslide.com 578 NAME INDEX Discount Art, 370 Discover, 443 Dolega, Les, 253 Dollar General, 463 Dollar Tree, 171, 207, 322, 369–370 Domino’s Pizza, 483 Doneger Group, 363 Donna Karan, 340 Dress Barn, 147 DSW, 379–380 Duluth Holdings, 322 Duluth Trading Company, 253 Dun & Bradstreet, 256, 522 Dunkin’ Donuts, 55, 56, 122, 126, 133, 248, 335, 478 Dutti, 335 E Easy Store Creator, 476 eBay, 153, 171, 322 eBid, 148 ECR Europe, 395 Eddie Bauer, 158, 322 Eddie V’s, 84 Edible Arrangements, 126 El Corte Ingles, 465, 466 eMarketer.com, 169 Enjoy.com, 162 Enterprise car rentals, 305 Enterprise Holdings, Inc., 304 Entrepreneur magazine, 77, 321 Esri, 244 Estee Lauder, 304, 477 Etsy, 322 EyeQ, 45 F Facebook, 24, 230, 488, 489 Family Dollar, 219, 322 Family Tree, 308 Faneuil Hall, 268 Farid, Tariq and Kamran, 126 Farm Fresh, 392 Fast Marketing Plan, 82 Federal Express, 397 Federal Trade Commission, 88, 89, 118, 119, 226, 281 Federation of Pharmacy Networks (FPN), 364 Fendi, 340 Field and Stream, 517 Fields, Debbi, 304 Finish Line, 120, 311 Flagship Merchant Servcies, 346 Food Lion, 99, 227, 520–521 Food Marketing Institute, 139, 140 Foot Action, 322 Foot Locker, 208, 270, 322 Foreman, George, 158 Forever 41, 120 Fornell, Claes, 516 Z04_BERM4672_13_GE_NIDX.indd 578 Forrester, 165 Fortune, 305 FPN (Federation of Pharmacy Networks), 364 Franklin Mint, 154 Fred Meyer, 141 Fresh Direct, 140, 189 Fresh Market, 392 Friedman’s, 41, 323 Fuller Brush, 163 G Galeria Kaufhof, 144 GameStop, 45, 143 Gap, Inc., 84, 147, 208, 270, 274, 320, 336, 366, 373, 443 Gautschi, David A., 252 Gaylan’s, 322 General Growth Properties, 272 geo Vue, 244 GFK Geo Marketing, 247 Giant Food, 65, 99, 395, 479 Gillette, 372 Gilt Groupe, 134, 135 Goodwill, 171 Google, 219 Great Atlantic & Pacific Tea, 41 Great Mall of China (Jinyuan Yansha), 273 Gucci, 385 Guitar Center, 275 Guthy/Renker, 157 GXS, 220 H Hallmark, 270, 463 Hannaford supermarkets, 99 Harris Teeter, 373 Haute Look, 134 Henri Bendel, 208 Hertz car rentals, 57 Hibbett Sports, 378 Hickory Farms, 467 High Point trade show, 384 H&M, 272, 323, 428 Ho, Teck-Hua, 253 Hollinger, Richard, 397 Home Depot, 26, 31–34, 42, 51, 143, 176, 215, 260, 279, 304, 320, 324, 336, 338, 346, 395, 443, 523 Home Shopping Network (HSN), 158, 304 Hot Topic, 322–323 Hudson’s Bay Company, 134, 136, 144, 219 Hyatt Hotels Corporation, 470 I Ideel, 134 IGA, 140 Ikea, 48, 73, 84, 99, 240, 305, 319, 364, 444, 477 Imgur, 482 Inditex, 335, 362 Information Resources, Inc., 226 Innovel Solutions, 394 Internal Revenue Service, 522 International Franchise Association, 116, 129, 226 Internet Retailer, 165 Intouch Interactive, 135 iTools, 212 J JAG Footwear, 147 Jazzercise, 118 J C Penney, 42, 120, 163, 264, 320, 394, 395, 525 JDA Software, 378, 380 Jiffy Lube, 24 Jinyuan Yansha (Great Mall of China), 273 John Lewis, 166 Jordan’s Furniture, 479 Joy of Socks, 143 Juicy Couture, 270 Jungle Jim’s International Market, 463 Justice, 147 K Kalibrate, 244, 436 Kennedy, John F., 64, 65 Kern, Clifford, 252 KFC, 123, 128, 370 Kik, 482 Kiosk Industry Association, 172 Kirby, 163 Klipfolio, 519 Kmart, 42, 43, 88, 136, 137, 145, 196, 322, 346, 394, 398, 479 Kohl’s, 85, 151–152, 207, 329, 394, 463, 505, 526 Kroger Company, 26, 80, 122, 140, 300, 302, 310 Kronos, 337 L La Boqueria Market, 85 Lands’ End, 36, 158 Lane Bryant, 147, 196 Lane Crawford, 54 Langone, Ken, 31 La Senza, 208 L Brands, 23, 208 LensCrafters, 99, 121 Levi’s, 147, 372 Levi Strauss and Co., 390 Life Time Fitness, 322 Lillian Vernon, 304 The Limited, 366, 373 Limited Brands, 346, 395 6/28/17 3:47 PM www.downloadslide.com Linens-N-Things, 41, 323 L L Bean, 154, 157, 364–366 LongHorn Steakhouse, 84 Looptworks, 393 Lord & Taylor, 47, 99, 136, 525 Louis Vuitton, 116, 279, 340 Lowe’s, 26, 308, 320, 345, 463, 505 Lululemon, 268, 390, 517 Lush, 477 Luxottica, 99, 121 LVMH, 340 M Macy’s, 30, 41, 42, 65, 120, 121, 144, 177, 196, 264, 270, 273, 304, 309, 310, 320, 322, 329, 330, 364, 365, 366, 370, 378–379, 390, 394, 395, 427 Mall at Partridge Creek, 271 Mall of America, 273 Marc Jacobs, 340, 484 Marcus, Bernie, 31 Markdown Manager software, 449 Marketing Guidebook, 261 Marriott International, 447 Marshalls, 41, 43, 146, 243, 274, 389 Martin’s Food Markets, 99 Mary Kay Cosmetics, 163, 304 Massimo, 335 Massimo Dutti, 362 MasterCard, 443 Master software, 380 Mauerpark Sunday Flea Market, 148 Maurices, 147 MaxMara, 270 McCrorys, 146 McDonald’s restaurants, 64, 98, 117, 133, 266, 305, 310, 335, 373, 444, 465, 523 McFarren, Paul, 152 Mega Group USA, 364 Meijer, 141 Menear, Craig, 34, 176 Mercedes, 83 Metro Center (Colma, California), 274 MetroCount, 250 Meyrowitz, Carol, 445 Michael Kors, 270 Michaels, 322 Michigan State University, 96 Microsoft, 372 MicroStrategy, 217, 378 MikMak, 489 Miller, Christine, 382 MoseleyBona Retail, 467 Motel 26, 78 MPlans, 82 Mrs Fields’ Cookies, 304 MY OTB Software, 417 My Local, 243 Z04_BERM4672_13_GE_NIDX.indd 579 NAME INDEX mySimon.com, 383, 384, 427, 428 N National Association for Retailing Merchandising Services, 398 National car rentals, 305 National Franchise Mediation Program, 129 National Retail Federation, 88, 226, 333, 522 National Trust for Historic Preservation, 279 Nationwide Marketing Group, 364 NATM Buying Corporation, 364 Neiman Marcus, 61, 75, 83, 154, 400, 438 Nestle Nespresso, 477 Netflix, 73, 500 Net Grocer, 189 New Concepts in Marketing, 398 NexTag, 428 Nicholson, Pamela, 305 Nielsen, 226, 244 Nike, 28, 147, 372, 443 Noble, 336 Nordstrom, 41, 51, 212, 268, 270, 273, 274, 305, 395, 463, 517, 523 Nugget Market, 305 O Ocean State Job Lot, 137 Office Depot, 264, 320 Office Max, 137 Old Navy, 84, 274, 335, 373 Olive Garden, 84 Ollie’s Bargain Outlet Holdings, 322 OnlineAuction, 148 OnStrategy, 72 OpenTable, 488 Oracle, 421, 441 Origins, 477 Orlebar Brown, 277 Outdoor Advertising Association, 487, 488 Oysho, 362 P Pal’s Sudden Service, 70 Papa John’s, 84 Parcells, Robert J., 252 Pavlis, Michalis, 253 Payless Shoes, 137, 346 PayPal, 322 Peapod, 47, 75, 99, 154, 189 Pearle Vision, 99 Pearson Higher Education, 226 Pep Boys, 335 Petco, 310 PetSmart, 115, 308 Pew Internet & American Life Project, 197 579 Pier Imports, 274, 278, 322 Pimkie, 116 Pinder, Steven, 189 Pink, 208 Pitney Bowes, 218, 244, 246 Planalytics, 413 Polo Ralph Lauren, 147 Polycom, 346 Pottery Barn, 274 PriceGrabber.com, 428 Priceline.com, 171, 523 Procter & Gamble, 398 Progressive Grocer, 412, 522 Public Register Online, 224 Publishers Clearinghouse, 154 Publix, 140, 270, 320, 398 Pull & Bear, 362 Purchx, 429 Q Quiksilver, 41, 323 QVC, 154, 158, 394 R Radio Shack, 41, 323 Rajagopal, 253 Rakuten.com, 384, 397 RealReal, 134, 135 Recreational Equipment Inc (REI), 123, 305 Redbox, 57 Reddit, 482 RedLaser, 429 REI (Recreational Equipment Inc.), 123, 305 Retail Detail Merchandising, 359 Retail Info Systems News, 216 Retailing Today, 522 Retail Link, 214 Retail Management Advisor, 301 Retail Pro, Inc., 217 Revionics software, 435 Revlon, 372 Risk Management Association, 522 Rite Aid, 261 Rite Site, 190 Rituals, 87 Ritz Carlton, 212 Rogers, David S., 253 Ronald McDonald House, 64 Rookwood Commons, 274 Rose Bowl Flea Market, 148 Ross Stores, 146, 304, 363 Rouse, James, 268 Royald Ahold, 99, 136 Rue 41, 270 Rue La La, 134 RWR Group, 303 S Safeway, 140, 320 6/28/17 3:47 PM www.downloadslide.com 580 NAME INDEX Sage, 405 Saks Fifth Avenue, 41, 75, 99, 136, 438 Sales and Marketing Pro, 82 Sam’s Club, 56, 147, 148, 304, 398 Samsonite, 147 SAP software, 380 SAS software, 378, 379–380, 412 Save-A-Lot, 141, 323, 392 Sbarro, 41, 323 Seagull Scientific, 390 Seamless.com, 170–171 Sears, 42, 43, 65, 83, 99, 115, 120, 136, 264, 266, 270, 273, 320, 322, 343, 366, 394, 395 Seasons 72, 84 SecondaryData.com, 215 SecondSpin.com, 435 SeniorStore.com, 83 Sephora, 120, 143, 145, 270, 340, 483 SERVQUAL, 523 7-Eleven, 99, 128, 139, 219, 266, 367–368, 383, 479 Shaklee, 163 Shelf Logic Enterprise, 380, 470 Sherwin-Williams, 27, 28, 122 Shopify, 322 Shopkeep, 415 ShopKo, 330 Shopping Centers Today, 270 Shopping.com, 428 ShopSavvy, 429 Side-by-Side, 98 Simon and Westfield, 271 Singleton, Alex, 253 Skoreit!, 148 Slack, 489 Small Business Administration, 226, 265, 520, 522 Small Business Development Center (SBDC), 113 Smart Brief, 505 SmartDraw, 361 Smart Sheet, 418 SmartSource, 494–495 Sofitel, 99 Southdale Center, 272 Speedway, 139 Spiegel, 157 Spigit, 379 Sports Authority, 137, 241, 517, 518 Sports Chalet, 346, 517 Sprint, 65 Standard Rate & Data Service, 226 Staples, 87, 143, 172, 241, 278, 320, 336, 394 Starbucks, 23, 56, 133, 246–247, 265, 266, 278, 335, 478 StatPac, 54 Sterling, 323 Stop and Shop, 99 Z04_BERM4672_13_GE_NIDX.indd 580 Stores, 522 Stores.org, 88 Stradivarius, 362 Stripes, 443 Subway, 278, 478 Sunglass Hut, 99, 121, 227 Supervalu, 323, 392, 395, 505 Supply Chain Guru, 413 Symphony Gold, 361, 380 Sysco, 294 T Taco Bell, 74 Taco John’s, 127 Talbots, 274 Tang, Christopher S., 253 Target Corporation, 26, 42, 64, 65, 87, 99, 120, 145, 177, 215, 264, 265, 266, 272, 301–303, 320, 329, 335, 344, 346, 366, 394, 395, 398, 399, 444, 479 TD Bank, 322 Tele Mart, 244 Teradata Magazine, 219 Tesla Motors, 111 Tetrad, 244, 253 T.G.I Friday’s, 278 Thalia, 196 Thos Moser, 268 TiER1 Performance Solutions, 310 Tiffany, 84, 85, 280, 435, 463 Tilly’s, 360 T J Maxx, 41, 43, 47, 85, 135, 146, 243, 444 TJX, 146, 320, 445, 518, 519, 529 T-Mobile, 65 Tommy Hilfinger, 147 Tompkins Supply Chain Consortium, 523 TopShop, 477 Torrid, 323 Totes, 147 TouchBistro, 415 Toys “R” Us, 43, 98, 143, 197, 241, 266, 322, 335, 396 Trader Joe’s, 82, 99, 366, 373, 477 Travelocity, 427 Travelsmith, 157 Trivago, 427 True Car, 427 Trunk Club, 135 Tuff, Chris, 482 Tupperware, 163 22squared, 482 U uBid.com, 171 UK Office of National Statistics, 296 Ulta, 304 Under Armor, 268 Underhill, Paco, 476 Unified Grocers, 412 Uniqlo, 373 UPS, 397 UPS Supply Chain Solutions, 394 Urban Outfitters, 261, 468, 477 U.S Census Bureau, 226, 244, 245, 253, 256, 321, 522 Uterqüe, 362 V VALS, 196 Venmo, 482 Vergara, Sofia, 196 Verizon, 65 Vernon, Lillian, 304 VIB Group, 363–364 Victoria’s Secret, 23, 208, 274, 304 Vince, 268 Visa, 443 VisualLease, 280 Volusion, 476 W Walgreens, 26, 207, 247, 305, 320, 389, 394 Walmart, 23, 26, 42, 43, 56, 64, 65, 82, 83, 120, 145, 148, 152, 214, 260, 266, 281, 305, 320, 329, 335, 336, 343, 360, 388, 394, 395, 398, 427, 432, 444, 463, 478, 479, 505 Warby Parker, 268 Wawa, 139 WeChat, 489 Wegman’s Food Markets, 272, 303, 305 Weisbrod, Glen E., 252 Wells Fargo, 79 Wendy’s, 78, 215, 310, 490 West Edmonton Mall, 273 Wet Seal, 323 WhatsApp, 489 Whole Foods Market, 64, 305, 463 Williams-Sonoma, 158, 274, 304, 477 Winn-Dixie, 322, 330 Wix, 476 WOM (World of Music), 28 Woolworths, 146 X Xcel, 322, 525 Y Yard House, 84 Yellow Pages, 487 YikYak, 482 Z Zappos, 303 Zara, 323, 335, 362, 525 Zara Home, 362 Zulily, 134 Zumiez, 270 6/28/17 3:47 PM www.downloadslide.com Subject Index A Accounting cost method, 406–408 questionable or illegal, 323–324 retailing careers in, 406 retail method, 408–411 Accounts payable to net sales, 321 ACSI (American Customer Satisfaction Index), 516–517, 523 ADA (Americans with Disabilities Act), 64–65 Additional markup, 447 Additional markup percentage, 448 Addition to retail percentage, 448 Add-on sales, 195 Administered pricing, 434 Advertising ad-to-sales ratios, 485 advantages/disadvantages of, 485–486 cooperative, 485 explanation of, 483 manufacturer vs retailer strategies, 483–485 media choices for, 486–489 objectives of, 485 of prices, 89, 433 vs publicity, 490 types of, 489–490 Affinity, 278 Affordable Care Act, 342 Airport retailing, 153, 172–173 All-you-can-afford budgeting, 500 Alterations, as customer service, 53 American Community Survey, 258 American Customer Satisfaction Index (ACSI), 516–517, 523 Americans with Disabilities Act (ADA), 64–65 Analog model, 250 Apathetic shoppers, 199 Application blanks, 308–309 Aspirational group, 192 Asset management balance sheets, 317–319 bankruptcy protection, 323 economic conditions and, 321–322 explanation of, 317 funding sources, 322 mergers and consolidations, 322–323 ratios used in, 320–321 strategic profit model, 319–320 Asset turnover, 318 Assortment depth vs width of, 370 merchandise quality and, 369–370 software for, 379–380 strategies for, 370–372 Assortment displays, 474 Assortment merchandise, 366 Assortment-oriented consumers, 431 Atmospherics leaders, 463 ATMs (automatic teller machines), 60 At-the-market orientation, 428 Attitudes (opinions), of consumers, 193, 194, 197–199 Attitudinal loyalty, 49 Augmented customer service, 50, 51 Augmented retail strategy, 47 Automatic markdown plan, 449 Automatic reordering system, 424 Automatic teller machines (ATMs), 60 B Baby Boomers, 199 Bait-and-switch advertising, 433 Balanced tenancy, 270 Balance sheets, 317–319 Bankruptcy protection, 323 Basic stock list, 366 Basic stock method, 413–415 Battle of the brands, 375 Beacon technology, 224 Behavioral loyalty, 49 Benchmarking, 522–523 Bifurcated retailing, 82 Big data, 206, 378 Billboard (outdoor) advertising, 487–488 Bloggers, 490 Book (perpetual) inventory system, 407, 419–420 Boston, Massachusetts, 268 Bottom-up budgeting, 325 Bottom-up space management, 336 Box (limited-line) stores, 138, 141 Brand intimacy, 71–72 Brands battle of, 375 generic, 374–375 manufacturer (national), 372 private (dealer or store), 199, 366, 372–374 Budgeting See also Merchandise forecasting and budgeting benefits of, 324–325 explanation of, 324 incremental, 315–316 ongoing process, 326–328 preliminary decisions in, 325–326 in promotional strategy, 500–501 zero-based budgeting, 315–316 Bundled pricing, 446 Business entities, 75–76 Business failures of franchises, 127 in global retailing, 526 of independent retailers, 112–113 in retail strategy integration, 518 Business format franchising, 116–117 Business plans, 72 Business purchase, 76–77 Business start-ups investments requirements, 79–80 as ownership alternative, 76 Business taxes, 280 Buyers aptitude of, 141 explanation of, 364 opportunistic buying by, 389 private-label buying by, 366 training programs for, 312 Buying See Merchandising; Merchandising plan implementation; Merchandising plans C Canned sales presentation, 494 Capital expenditures, 326, 329 Careers See Retailing careers Case displays, 474 Cash flow, 328 Catalog tactics, 157 Category killer (power retailer) stores, 143, 147 Category management explanation of, 57, 376 process of, 376–378 retailing careers in, 47 software for, 380 Caveat emptor, 81 Census of Population, 256 Central business districts (CBD), 266–268 Centralized buying organization, 361 581 Z05_BERM4672_13_GE_SIDX.indd 581 7/4/17 3:06 PM www.downloadslide.com 582 SUBJECT INDEX Chain retailers advantages/disadvantages of, 115–116 buying organization in, 361–362 explanation of, 114–115 marketplace niche, 111 off-price stores, 139, 146–147, 388 organizational structure of, 300, 301 store format decisions, 335 trading-area analysis by, 243–244 Channel control, 122 Channel of distribution information flows in, 213–214 retail functions in, 27–28 task division in, 294–295 Channel relationships, 56–57 Chargebacks, 385 Chatbots, 489 Checkout process (E-retailing), 476 See also Point-of-sale (POS) systems Circular advertisements, 487, 488 Class consciousness, 193, 194 Classification merchandising, 412 Cleanliness of stores, 470 Closed assortment displays, 474 Closeout chains, 146 Co-branding, 478 Cognitive dissonance, 203 Collaborative planning, forecasting, and replenishment (CPFR), 394 Collection period, 321 Color, in store interior, 468–469 Combination classification of jobs, 296, 298 Combination stores, 138, 141 Commissions, 311 Communication with customers, 87, 89, 90 with employees, 337, 338 Community relations, 479 Community shopping centers, 273–274 Compensation, of employees, 310–311, 338 Competition in direct marketing, 157 as information source, 383 price wars and, 434 shopping reports, 384 trading-area analysis of, 259–260 as uncontrollable variable, 87 Competition-oriented pricing, 438, 441–442, 443 Competitive ads, 489 Competitive advantages, 84–85 Competitive parity budgeting, 500–501 Complementary good and services, 371 Component lifestyles, 195 Z05_BERM4672_13_GE_SIDX.indd 582 Computer-Assisted Strategic Retail Management Planning, 90–91 Computerized checkout, 344 Concentrated marketing explanation of, 84, 206 strategy examples, 207–208 Concierge services, 162 Consignment purchase, 389 Consolidations, 322 Constrained decision making, 118 Consumer behavior (term), 200 Consumer confidence, 195 Consumer cooperatives explanation of, 123 marketplace niche, 112 Consumer credit, 294–295 Consumer decision making customer loyalty and, 206 impulse purchases, 204–205 process of, 201–203 types of, 203–204 “what” and “where” in, 200–201 Consumer-focused merchandising, 359 Consumerism, 64–66 Consumer lifestyles, 157 Consumer psychology, 193 Consumers attitudes of, 193, 194, 197–199 bill of rights for, 64, 65 cross-shoppers, 199–200, 336 demographics of, 190–192, 194–196 diversity in, 189 environmental factors and, 208 hybrid, 196 information needs, 213 lifestyles of, 192–196 needs and desires of, 196–197 pricing strategy and, 429–431 profile use by retailers, 196 shopping orientation of, 430–431 sophistication of, 195 as uncontrollable variable, 87 Contests, 496 Contingency pricing, 445 Controllable variables, 85–87 Control phase, 90 Control units, 411 Convenience-oriented consumers, 431 Convenience-oriented retailers, 278 Convenience stores, 138, 139 Cooperative advertising, 485, 489–490 Cooperative buying, 364 Core customers, 50 Corporations, 76 Cost complement, 408–409 Cost containment, 137–138 Cost fluctuations, 444 Cost method of accounting book inventory in, 407 disadvantages of, 408 explanation of, 406 physical inventory in, 406–407 Cost of goods sold, 316, 405 Cost-oriented pricing, 438–441, 443 County Business Patterns, 261 Coupons, 496, 497, 504 CPFR (collaborative planning, forecasting, and replenishment), 394 Credit accounts, 52–53, 294–295, 343–344 Credit card processing, 399 Credit cards, pre-paid, 443 Crisis management, 346–347 Cross-merchandising, 361, 371 Cross-selling, 338 Cross-shopping, 199–200, 336 Cross-training, 337 Crowdsourcing, 378 Culture, 192, 194 Current ratio, 321 Curving (free-flowing) traffic flow, 471–472 Customary pricing, 443 Customer base, 49–50 Customer information management, 217–218 Customer loyalty purchase decisions and, 206 types of, 49 Customer loyalty programs, 55–56, 115, 206 Customer relationship management, 213 Customer respect checklist, 37 Customer reviews, online, 478 Customers communicating with, 87, 89, 90 core, 50 for direct marketing, 159, 160 loyalty of, 49 Customer satisfaction explanation of, 54 improving, 55 as objective, 81 Customer satisfaction surveys, 54 Customer service employee empowerment and, 51 explanation of, 36 levels of, 50, 51 logistics and, 397 in retail strategy mix, 131 vs service retailing, 58 strategy for, 51–54 7/4/17 3:06 PM www.downloadslide.com technology and, 62, 145 typical services, 53 Customer space, 470 Cut cases, 474 D Database management data mining and micromarketing, 219–220 data warehousing, 218–219 explanation of, 217–218 UPC and EDI data, 220–221 Database retailing, 156 Dead area, 469 Debit-card system, 343 Decentralized buying organization, 362 Delivery as customer service, 53 in direct marketing, 161 Demand fluctuations, 444–445 Demand-oriented pricing, 438, 442, 443 Demographics, 190–192, 194–196 Department stores, traditional merchandising in, 359 organizational structure of, 298–300 retail strategy mix, 138, 143–144 Depth of assortment, 370 Description buying, 387 Destination retailers, 131, 248 Differentiated marketing explanation of, 84, 206 strategy examples, 208 Direct costs, 326 Direct mail advertising, 487 Direct marketing advantages/disadvantages of, 155 customer database for, 156 domain of, 156 explanation of, 154 key issues in, 161 measuring results of, 160–161 strategy for, 159–161 trends in, 156–158 Direct product profitability (DPP), 441 Direct selling, 161–163 Direct store delivery (DSD), 396–397 Discount orientation, 428 Discretionary income, 190 Disguised surveys, 227 Displays in E-retailing, 475–476 in traditional stores, 473–474 Display windows, 466–467 Dissociative group, 192 Distributed promotion effort, 504 Z05_BERM4672_13_GE_SIDX.indd 583 SUBJECT INDEX Distribution channel See Channel of distribution Diversified retailers explanation of, 136 organizational structure of, 300–301, 302 Diversity in consumers, 189 in employment, 305 Dollar control, 405, 411, 419 Dollar discount stores, 146 Domestic vs global sourcing, 373 Downsizing, 137 Downtown revitalization, 267–268 DPP (direct product profitability), 441 DSD (direct store delivery), 396–397 Dual marketing, 122 Dump bins, 474 DWcodes, 220 E Early markdown policy, 449 Early recovery of cash, 435 Ease of entry, 112 Easy Analytic Software, 258 Economic base, 253, 258–259 Economic consumers, 430 Economic order quantity (EOQ), 424 Economy current U.S climate, 40–42 global, 98 impact on retailing, 41, 321 recession (2008), 321–322 retailing impact on, 25–26 retailing strategies and, 42–43 as uncontrollable variable, 88 ECR (efficient consumer response), 395 EDI See Electronic data interchange Editor & Publisher Market Guide, 258–259, 260 EDLP (everyday low pricing), 443–444 Efficient consumer response (ECR), 395 Electronic article surveillance, 399 Electronic banking, 60 Electronic data interchange (EDI), 220–221, 388, 395, 399 Electronic point-of-sale systems, 344 Electronic retailing See E-retailing Employee benefits, 296, 311, 342 Employee discounts, 447 Employee Polygraph Protection Act, 308 Employees communicating with, 337, 338 compensation of, 310–311, 338 diversity in, 305 efficient use of, 337–338 empowerment of, 51 583 merchandising functions of, 360, 364 motivation of, 311–313 needs of, 293 performance standards for, 337 productivity of, 337–338 recruitment of, 306 selection process for, 306–309 store atmosphere and, 469 supervision of, 311–313 women, 304–305 Employee scheduling, 337 Employee space, 470 Employee theft, 399, 401 Employee training, 309–310, 337 Employee turnover, 292–293, 301–303, 337 Empowerment, of employees, 51 Energy management, 339–340 Enhanced shopping experience, 477 Ensemble displays, 474 Environmental factors, 208 EOQ (economic order quantity), 424 Equal store organization, 300, 301 E-retailing advantages/disadvantages of, 167–168, 476 examples of, 170–171 factors to consider, 167–170 global index of, 165, 166 mobile apps for, 170 online grocery business, 188–189 role of Web in, 164 sales tax and, 158 scope of, 165–166 “store” atmosphere, 474–476 Web user characteristics, 167 Ethics See also Consumerism; Social responsibility ADA requirements and, 64 in bargaining power, 147 codes of, 63 in customer returns, 375 employment benefits and, 296 in franchising, 121 gentrification and, 254 in loan covenants, 327 markdown allowances and, 412 online customer reviews and, 478 in pricing, 89, 434 promotional goods and, 495 in relationship retailing, 62–63 in sales personnel, 524 security breaches and, 215 in selling add-ons, 195 shopping center leases and, 268 social responsibility and, 346 in upcycling, 393 7/4/17 3:06 PM www.downloadslide.com 584 SUBJECT INDEX Evaluation of alternatives, 202 Everyday low pricing (EDLP), 443–444 EXCEL, as planning tool, 529 Exclusive distribution, 29 “Exclusives” (lease clause), 281 Executives profile of, 445 quotations from, 74 recruitment of, 303 types of, 75 Expected customer service, 50, 51 Expected retail strategy, 47 Experiential merchandising, 476–477 Experiment (research method), 229 Extended decision making, 204 Extensive media coverage, 504 External secondary data, 226–227 F Face-to-face groups, 193 Facial recognition software, 332 Factory outlets, 130–131, 139, 147 Fad merchandise, 366 Family life cycle, 193, 194 Family-owned retailers, 113 Fashion merchandise, 366 Fashion trends, 369 Feedback from customers, 54 on retail strategy, 90 FIFO (first-in-first-out) method, 407–408 Financial analysts, in retailing careers, 324 Financial leverage, 319 Financial merchandise management benefits of, 405 explanation of, 405 forecasting and budgeting in, 411–418 inventory control in, 421–424 inventory valuation in, 405–411 unit control systems in, 418–421 Financial resource needs, 79–80 Fingerprint scans, 332 First-in-first-out (FIFO) method, 407–408 Fixed assets, 317 Fixed costs, 326 Flash-sale retailers, 134–135 Flat organization hierarchy, 297 Flea markets, 139, 148–149 Flexible pricing, 445 Flooring, and store atmosphere, 468 Floor-ready merchandise, 395 Flyers (advertisements), 487, 488 FOB (free on board), 388 Z05_BERM4672_13_GE_SIDX.indd 584 Food-based superstores, 138, 140–141 Food-oriented retailers box (limited-line) stores, 141 characteristics of, 142 combination stores, 141 convenience stores, 139 food-based superstores, 140–141 online, 188–189 store-based strategy mixes, 138–139 supermarkets, 139–140 warehouse stores, 142 FORCE acronym, 335 Forecasting See Merchandise forecasting and budgeting Formal buying organization, 361 Franchisees advantages/disadvantages for, 77 costs to, 127 factors to consider, 117, 128 failure rates, 127 Franchising advantages/disadvantages of, 118–119 ethics in, 121 explanation of, 116–117 franchisor–franchisee relationships, 127–129 managerial issues, 126–127 marketplace niche, 112 size and structure in, 117 Free-flowing (curving) traffic flow, 471–472 Free on board (FOB), 388 Free samples, 496, 498 Frequency, in promotions, 504 Frequent shopper programs, 55–56, 496, 498 Fringe trading area, 247 Full-line discount stores, 138, 145 Fully integrated vertical marketing system, 122 Functional account expenses, 326 Functional classification of jobs, 296, 298 Functional product groupings, 470 Funding sources, 322 G Gap analysis, 524–525 Gender differences in brand intimacy, 72 in Web users, 167 Gender roles, 194 General direct marketers, 154 General merchandise retailers factory outlets, 130–131, 147 flea markets, 148–149 full-line discount stores, 145 membership clubs, 147–148 off-price chain stores, 146–147, 388 retail strategy mixes, 138–139 specialty stores, 142–143 traditional department stores, 143–144, 298–300, 359 variety stores, 145–146 Generation Xers, 199 Generic brands, 374–375 Gentrification issues, 254 Geographic classification of jobs, 296, 298 Geographic information system (GIS), 244–247 Gift cards, 54, 61, 443 Gift wrapping, 53 GIS (geographic information system), 244–247 Global Retail Development Index (GRDI), 523–524 Global retailing in developing countries, 192 direct marketing in, 158 domestic vs global sourcing in, 373 e-commerce index of, 165, 166 examples of, 98–99 executive recruitment in, 303 expansion in, 30, 319 failures in, 526 gray market goods in, 421, 434 opportunities and threats in, 96–98 payment issues in, 87, 336, 399 pop-up stores in, 277 promotional strategy in, 500 shopping behavior in, 198 social responsibility in, 470 strategies for, 54, 133 technology in, 123 GMROI (gross margin return on investment), 422 Goal-oriented job description, 307 Good/service category, 77–78 Goods retailing, vs service retailing, 57 Goods/services offered, 131 Government rules See also Legal restrictions pricing strategy and, 431–433 in situation analysis, 82 Graduated leases, 280 Gravity model, 250 Gray market goods, 421, 434 GRDI (Global Retail Development Index), 523–524 Gridiron (straight) traffic flow, 471 Gross margin return on investment (GMROI), 422 Gross profit (margin), 316, 405, 440 7/4/17 3:06 PM www.downloadslide.com H Hidden assets, 317 Hierarchy of authority, 297 Hierarchy of effects, 501, 503 Horizontal cooperative advertising agreements, 489 Horizontal fashion trend, 369 Horizontal price fixing, 431 Horizontal retail audit, 528 Household life cycle, 193, 194 Huff’s law of shopper attraction, 251–252 Human resource management diversity and, 305 employee compensation, 310–311, 338 employee privacy, 306 employee recruitment, 306 employee selection, 306–309 employee training, 309–310 employee turnover reduction, 292–293, 301–303, 337 explanation of, 301 labor laws and, 305–306 personnel utilization, 337–338 work environment and, 303–304 Human resource process (term), 305 Hybrid consumers, 196 Hypermarkets, 141 I I-EDI (Internet electronic data interchange), 220–221 Image (term), 82, 461 See also Retail image Impulse purchases, 204–205, 329 Income, discretionary, 190 Income (profit-and-loss) statement, 316 Incremental budgeting, 315–316, 500 Independent retailers advantages/disadvantages of, 114 explanation of, 112–113 failure rates of, 112–113 marketplace niche, 111 merchandising in, 359 organizational structure of, 297–298, 299 Independent vertical marketing system, 122 Influencer marketing, 490 Infomercials, 158 Informal buying organization, 361 Information gathering and processing in channel of distribution, 213–214 inadequate, 214 marketing research process, 221–230 overview of, 212 retail information system, 215–221 Z05_BERM4672_13_GE_SIDX.indd 585 SUBJECT INDEX Information search, 202 In-home shopping, 197 Initial markup, 440 Initial public offering (IPO), 322 Innovativeness, in merchandising plan, 366–369, 378 Inseparability, 58 Inside buying organization, 362–363 Inspection, of merchandise, 386 Installation, as customer service, 53 Institutional ads, 489 In-store pickup, 178 See also Omnichannel retailing Insurance, 342 Intangibility, 58 Intensive distribution, 29 Intensive media coverage, 504 Internal secondary data, 224–225 Internet, 164 See also E-retailing Internet electronic data interchange (I-EDI), 220–221 Inventory-level planning, 413–416 Inventory management automated systems, 392 explanation of, 398 GMROI, 422 inventory analysis, 401 inventory levels, 398–399 merchandise security, 397, 399–400, 401 operational issues in, 340–341 perpetual inventories, 407, 419–420 physical inventories, 391, 406–407, 419, 420 quick response planning, 394–395 reorders, 391–392, 423–424 retailer tasks in, 398 reverse logistics, 400–401 stock turnover, 375, 421–422 Inventory shortages, 416, 417 Inventory shrinkage, 397, 399–400, 401 Inventory valuation cost method, 406–408 explanation of, 405–406 retail method, 408–411 Involved shoppers, 199 IPO (initial public offering), 322 Isolated stores, 265–266 Issue (problem) definition, 222 Item price removal, 433 J Job analysis, 306–307 Job applications, 308–309 Job descriptions, 307 585 Job interviews, 308 Job-listing websites, 308 Job motivation, 311 Jobs classification of, 296 related to tasks, 295 Job standardization, 337 K Kiosks, electronic See Video kiosks Knockout factors, 253, 281 L Labor laws, 305–306 Labor relations, 82 Last-in-first-out (LIFO) method, 407–408 Late markdown policy, 449 LBO (leveraged buyout), 322 Leader pricing, 446 Leadership dimensions, of retailers, 463 Leased departments advantages/disadvantages of, 120–121 explanation of, 120 marketplace niche, 112 Leases, 268, 279–280 Legal restrictions, 88, 89 See also Government rules Leveraged buyout (LBO), 322 Liabilities, 317 Lifestyle center, 274 Lifestyles, of consumers, 192–196 LIFO (last-in-first-out) method, 407–408 Lighting exterior, 466 interior, 468–469 Limited decision making, 204 Loan covenants, 327 Location leaders, 463 Locations See Site selection; Store location; Trading-area analysis Location-sensitive advertising, 37 Logistics customer service and, 397 customer transactions, 397 explanation of, 392 order processing and fulfillment, 394–395 performance goals for, 393–394 supply chain management, 394 transportation, 396 warehousing, 396–397 Loss leaders, 432, 446 Loss prevention, 397, 399–400, 401 7/4/17 3:06 PM www.downloadslide.com 586 SUBJECT INDEX M Magazine advertising, 487, 488 Mail surveys, 227 Main store control, 300 Main Street America program, 279 Maintained markup, 440 Maintenance-increase-recoupment leases, 280 Management as controllable variable, 86, 90 format alternatives, 77 legal restrictions and, 89 needs of, 293 Management audit form, 530 Manufacturer (national) brands, 372 Manufacturers channel control by, 122–123 pricing and, 431–432, 433–434 Markdown allowances, 412 Markdown percentage, 448 Markdowns control of, 449 minimizing, 404 optimization software, 441 percentage calculation, 447–448 reasons for, 447 timing of, 449 Marketing Checklist for Small Retailers, 529 Marketing Guidebook, 261 Marketing research process example of, 222–223 explanation of, 221–222 primary data in, 227–230 retailing careers in, 200 secondary data in, 224–227 Marketing techniques direct marketing, 154–161 target marketing, 84–85, 206–208 Market penetration pricing, 435 Market pricing, 434 Market segment product groupings, 470–471 Market skimming pricing, 435 Markup pricing additional markup, 447–449 explanation of, 438 percentage calculation, 438–440 in planning profit margins, 418 variable, 441 Marquees, 465 Massed promotion effort, 504 Mass marketing explanation of, 84, 206 strategy examples, 207 Mass merchandising, 82 MasterCard Identity Check, 332 Z05_BERM4672_13_GE_SIDX.indd 586 Mazur plan, 298–300 Media for direct marketing, 159 in promotional strategy, 486–489, 501–504 Megamalls, 273 Membership clubs, 139, 147–148 Membership group, 192 Memorandum purchase, 389 Merchandise evaluation of, 386–387 floor-ready, 395 loss prevention for, 397, 399–400, 401 product groupings, 470–471 receiving and stocking, 389–390 sources for, 385–386 types of, 366 Merchandise available for sale, 405 Merchandise forecasting and budgeting control unit designation in, 411–412 inventory-level planning in, 413–416 in merchandising plan, 364–366 profit margin planning in, 418 purchase planning in, 416–418 reduction planning in, 416, 417 sales forecasting in, 412–413 software for, 378 Merchandise management See Financial merchandise management Merchandise marts, 384 Merchandise space, 470 Merchandising careers in, 141, 312, 366, 389 classification, 412 as controllable variable, 86–87, 90 cross-merchandising, 361, 371 explanation of, 359 legal restrictions and, 89 mass, 82 micromerchandising, 360 philosophy of, 359–361 scrambled, 133–134, 336, 371 Merchandising buyers See Buyers Merchandising plan implementation information gathering, 383–385 merchandise evaluation, 386–387 purchase conclusion, 388–389 purchase negotiation, 387–388 receiving and stocking, 389–391 re-evaluation of, 392 reorders, 391–392 source selection/interface, 385–386, 387 Merchandising plans allocation in, 375 assortment in, 369–372 brands in, 372–375 buying organization in, 361–364 category management in, 376–378 forecasts in, 364–366 innovativeness in, 366–369 personnel functions in, 360, 364 software for, 378–380 timing in, 375 Mergers, 136, 322 Micromarketing, 219–220 Micromerchandising, 360 Millennials, 304 Minimum-price laws, 432 Minimum retail prices, 431 Minimum wage, 311 Minority employment, 305 Mixed-use centers and facilities, 248, 267 Mobile apps and devices as advertising media, 487, 488 beacon technology, 224 E-retailing, 170 marketing apps, 482 point of sale (POS) systems, 60–61, 332, 415 smartphone coupons, 504 Model stock approach, 472 Model stock plan, 366 Monthly sales index, 413 Motivation, of employees, 311–313 Multichannel retailing in direct marketing, 157 examples of, 153 explanation of, 22, 152 Multiple-unit pricing, 446 Mystery shoppers, 229 N National (manufacturer) brands, 372 Natural account expenses, 326 Need-satisfaction approach, 494 Neighborhood business districts (NBD), 268–269 Neighborhood shopping centers, 274 Net leases, 280 Net profit, 405 Net profit after taxes, 316 Net profit margin, 318 Net sales, 316 Net worth (owner’s equity), 317 Never-out list, 366 Newspaper advertising, 486, 487 Niche retailing, 82–83 Nondisguised surveys, 227–228 Nongoods services, 58 Nonprobability sample, 227 7/4/17 3:06 PM www.downloadslide.com Nonstore retailing See also E-retailing direct marketing, 154–161 direct selling, 161–163 explanation of, 153 vending machines, 163–164 Nontraditional retailing See also E-retailing airport retailing, 153, 172–173 video kiosks, 61–62, 135, 153, 172 O Objective-and-task budgeting, 501 Objectives positioning (image), 82–84 pricing strategy and, 435–436, 437 profitability, 81 in promotional strategy, 499–500 sales, 80–81 satisfaction of publics, 81–82 success and, 84 Observation (research method), 228–229 Odd pricing, 445 Off-price chain stores, 139, 146–147, 388 Off-retail markdown percentage, 448 Omnichannel retailing advantages of, 177 challenges in, 179 in direct marketing, 157 examples of, 153 explanation of, 22, 27, 152, 176 factors to consider, 176 retailing careers in, 486 strategy for, 177–178 Onboarding, 309 One-hundred percent location, 275 One-price policy, 445 Online auctions, 148, 171 Online customer reviews, 478 Online retailing See E-retailing Online shopping, 188–189, 197 See also E-retailing Online surveys, 227 OOS (out-of-stocks), 383, 423 Open assortment displays, 474 Open credit account, 53 Open-to-buy, 417–418 Operating expenditures, 326, 329 Operating expenses, 316 Operating procedures, 131 Operations blueprint, 333–335 Operations management asset management, 317–324 blueprint for, 333–335 budgeting, 324–328 crisis management, 346–347 Z05_BERM4672_13_GE_SIDX.indd 587 SUBJECT INDEX decisions in, 333 energy management, 339–340 explanation of, 316, 333 insurance, 342 inventory management, 340–341 outsourcing, 346 personnel utilization, 337–338 profit planning, 316–317 renovations, 340 resource allocation, 328–330 store format decisions in, 335–336 store maintenance, 338–339 store security, 341–342 technology and computerization, 344–346 Opinions (attitudes), of consumers, 193, 194, 197–199 Opportunistic purchases, 130–131, 388 Opportunities explanation of, 73 in global retailing, 96–98 Opportunity analysis, 518–519, 521 Opportunity costs, 329 Option credit account, 53 Order-getting salesperson, 492 Order lead time, 423 Order processing/fulfillment, 160, 394–395 Order-taking salesperson, 492 Organizational mission, 73–74 Organization charts, 296–297, 298 Outdoor (billboard) advertising, 487–488 Outlet malls, 147 Out-of-stocks (OOS), 383, 423 Outshopping, 197 Outside buying organization, 362–363 Outsourcing, 346, 394 Overall gross profit, 321 Overstocks, 383 Overstored trading area, 260 Owned-goods services, 58 Owner-managers, 77 Owner’s equity (net worth), 317 Ownership business entities, 75–76 retail institution types, 111–123 of store location, 242, 279 P Packaging, as customer service, 53 Parasite stores, 248 Parking facilities, 276–277, 467 Partially integrated vertical marketing system, 122 Partnerships, 75 587 Payment formats in global retailing, 87, 336 operational issues, 343–344 Pedestrian traffic, 275–276 Perceived risk, 193, 194 Percentage leases, 280 Percentage-of-sales budgeting, 501 Percentage variation method, 415 Performance measures benchmarking in, 522–523 explanation of, 521 Performance standards, for employees, 337 Perishability, 58 Perpetual (book) inventory system, 407, 419–420 Personal abilities for service retailing, 68 in situation analysis, 78–79 Personality (consumers), 193, 194 Personalizing consumers, 431 Personal security measures, 341–342 Personal selling, 491–494 Personal surveys, 227 Personnel See Employees; specific positions Philadelphia, Pennsylvania, 267–268 Phone surveys, 227 Physical inventories, 391, 406–407, 419, 420 See also Inventory management Pioneer ads, 489 Planned shopping centers advantages/disadvantages of, 270 community, 273–274 explanation of, 269–270 neighborhood, 274 regional, 272–273 strategies of, 270–271 type comparison, 272 Planned sources, 130 Planograms, 470 PMs (promotional or push monies), 492 Point of indifference, 251 Point-of-purchase (POP) displays, 473–474, 495–496 Point-of-sale (POS) systems electronic, 344, 415 explanation of, 60 inventory control and, 420 mobile apps and devices, 60–61, 332, 415 selfie pay, 332 self-scanning checkout, 60, 329, 344–345 POP (point-of-purchase) displays, 473–474, 495–496 7/4/17 3:06 PM www.downloadslide.com 588 SUBJECT INDEX Population data, 190–191, 256–258 Pop-up stores, 277 Positioning (image), 82–84, 461 See also Retail image Post-purchase behavior, 203, 400 Potential retail strategy, 47 Poverty of time (time pressures), 195, 198 Power center, 273 Power retailers, 143, 147 Predatory pricing, 432 Pre-paid credit cards, 443 Prestige pricing, 438 Pre-training, 309 Price change authorization form, 448 Price discrimination, 432 Price displays, 469 Price elasticity of demand, 429–430 Price fixing, 431–432 Price leaders, 463 Price line classifications, 412 Price lining, 447 Price marking, 390, 433 Price matching, 433 Price–quality association, 438 Price wars, 434 Pricing strategy basic options in, 428 broad policy, 436–437 competition and, 434 consumers and, 429–431 as controllable variable, 86–87, 90 decision checklist, 444 ethics in, 89, 434 government rules and, 431–433 legal restrictions and, 89 overview of, 428–429 price adjustments in, 447–449 pricing orientations, 428, 438–442 pricing policy types, 443–447 real-time deals, 427 retail objectives and, 435–436, 437 in retail strategy mix, 131 suppliers and, 433–434 Primary data advantages/disadvantages of, 227 explanation of, 222 sources of, 227–230 Primary trading area, 247 Privacy issues customers concerns, 65, 161, 167 employee rights, 306 Private (dealer or store) brands, 199, 366, 372–374 Prizes, 496, 498 PRIZM, 196, 250 Probability (random) sample, 227 Z05_BERM4672_13_GE_SIDX.indd 588 Problem awareness, 201–202 Problem (issue) definition, 222 Product classification of jobs, 296, 298 Product demonstrations, 496 Product-focused merchandising, 359 Product groupings, 470–471 Productivity of employees, 337–338 of retail strategy, 329–330, 519–521 Product life cycle, 368 Product quality leaders, 463 Product/trademark franchising, 116 Professional management, 77 Profitability objectives, 81 Profit-and-loss (income) statement, 316 Profit planning, 316–317, 418 Promotional gifts, 496, 498 Promotional goods, 495 Promotional mix advertising, 483–490 personal selling, 491–494 public relations, 490–491 sales promotion, 494–498 timing of, 504 Promotional or push monies (PMs), 492 Promotional strategy budget for, 500–501 as controllable variable, 87 in global retailing, 500 implementation of, 501–505 objectives for, 499–500 in omnichannel marketing, 178 promotional mix in, 501 in retail strategy mix, 131 review and revision of, 505 Promotions managers, 486 Prototype stores, 335 Publicity, 490 Public relations, 490–491 Purchase motivation product groupings, 470 Purchase of business, 76–77 Purchases, by consumers customer loyalty and, 206 decision process in, 201–203 impulse purchases, 204–205 logistics of, 397 post-purchase behavior, 203 purchase act, 202–203 Purchases, by retailers conclusion of, 388–389 consignment, 389 contract terms, 387–388 memorandum, 389 opportunistic, 130–131, 388 planned purchases calculations, 416–418 Q Quick ratio, 320 Quick response (QR) inventory planning, 388, 394–395, 399 Quotations, from retail executives, 74 R Rack displays, 474 Radio advertising, 487 Radio frequency identification (RFID), 389–390 “Radius clauses” (lease clause), 281 Random (probability) sample, 227 Rationalized retailing, 335 Reach, in promotions, 504 Real-time deals, 427 Receiving, 389–390 Recession (2008), 321–322 Recruitment of employees, 306 of executives, 303 Reduction planning, 416, 417 Reference groups, 192, 194 Referral gifts, 496, 498 Regional shopping centers, 272–273 Regression model, 250 Reilly’s law of retail gravitation, 251 REIT (retail real-estate investment trust), 322 Relationship retailing channel relationships in, 56–57 customer relationships in, 49–56 customer respect checklist, 37 ethics in, 62–63 explanation of, 36–37 in goods vs service retailers, 57–59 technology and, 59–62 Reminder ads, 489 Renovations, 340 Rented-goods services, 57 Reorder point, 423 Reorders, 391–392, 423–424 Research See Information gathering and processing Resident buying office, 363 Resource allocation, 328–330 Retail audit auditor careers, 520 difficulties in, 529 explanation of, 90, 526–527 process of, 527–529 response to, 529 sample audit forms, 529–531 timing of, 528 7/4/17 3:06 PM www.downloadslide.com Retail balance, 278 Retailers channel control by, 123 in foreign markets, 98–99 information needs, 213 largest, 26 leadership dimensions, 463 supplier relationships, 28–29, 82, 385, 387 Retail image community relations and, 479 elements of, 462 entertainment in, 462–463 increasing shopping time and, 476–477 leadership positions in, 463 overview of, 461 positioning strategies for, 82–84 significance of, 461–462 store atmosphere and, 464–474 Retail information system (RIS) building and using, 215–217 database management, 217–220 UPC and EDI technology, 220–221 Retailing See also Global retailing; specific types of retailing economic impact of, 25–26 overview of, 23–24 reasons to study, 25–29 special characteristics of, 29–30 Retailing careers accounting, 406 buyers, 141, 312, 366, 389 customer relationship management, 213 executives, 303, 445 financial analysts, 324 management, 47, 75 marketing research, 200 omnichannel promotions manager, 486 opportunities in, 25–26 retail auditors, 520 retail design, 467 security personnel, 338 site selection, 271 skills and abilities for, 75, 78–79 succession planning in, 113 trading-area analysis, 260 web developers, 155 women in, 304–305, 445 Retailing concept customer service and, 36 explanation of, 34–35 relationship retailing and, 36–37 total retail experience and, 35–36 Retailing effectiveness checklist, 531 Z05_BERM4672_13_GE_SIDX.indd 589 SUBJECT INDEX Retail institutions chain retailers, 114–116 direct marketing, 154–161 direct selling, 161–163 evolution of, 136–138 explanation of, 111 food-oriented, 138–142 franchises, 116–119 general merchandise, 142–149 independent retailers, 112–114 leased department, 120–121 niche markets served, 111–112 vending machines, 163–164 vertical marketing systems, 121–123 Retail life cycle, 134–136 Retail method of accounting advantages/limitations of, 411 cost complement calculation in, 408–409 deduction from retail value calculation in, 409–410 explanation of, 408 retail inventory value to cost conversion in, 410 Retail organization in chain retailers, 300, 301 in department stores, 298–300 in diversified retailers, 300–301, 302 factors to consider, 293 organization charts, 296–297, 298 overview of, 293–294 in small independent retailers, 297–298, 299 tasks and jobs in, 294–296 Retail planning software, 82 Retail promotion, 483 See also Promotional strategy Retail real-estate investment trust (REIT), 322 Retail reductions, 416, 417 Retail strategy control phase, 90 economic conditions and, 42–43 example of, 31–34 explanation of, 30 feedback on, 90 objectives for, 80–84 overall strategy development, 85–88 overview, 72–73 sample plan, 91–93 situation analysis in, 73–80 social responsibility in, 34 steps in planning, 30–31 tactics, 88–90 target marketing in, 84–85 template for, 90–91 value oriented, 47–48 589 Retail strategy integration examples of, 519, 526 opportunity analysis in, 518–519, 521 performance measures in, 521–525 planning procedures in, 518 productivity defined in, 519–521 scenario analysis in, 525–526 successes and failures in, 517–518 Retail strategy mix elements in, 131 of food-oriented retailers, 138–142 of general merchandise retailers, 142–149 retail life cycle, 134–136 scrambled merchandising, 133–134, 336, 371 wheel of retailing theory, 131–133 Return on assets (ROA), 318–319 Return on investment, 435 Return on net worth (RONW), 319 Returns policies, 375 reverse logistics, 400–401 store area for, 53–54 Revenue management, 434 Revolving credit account, 53 Rewards programs, 55–56, 115 RFID (radio frequency identification), 389–390 RIS (retail information system) See Retail information system (RIS) Risk, perceived by consumers, 193, 194 ROA (return on assets), 318–319 Robinson-Patman Act, 432 RONW (return on net worth), 319 Routine decision making, 204 S Safety stock, 423 Salaries, 311 Sale-leasebacks, 279 Sales forecasting, 412–413 Sales managers, 364 Sales objectives, 80–81 Sales opportunity grid, 518 Sales personnel efficient use of, 337 ethics and, 524 in promotional mix, 505 tips for, 492 Sales–productivity ratio, 472 Sales promotion advantages/disadvantages, 495 explanation of, 494 objectives of, 495 types of, 495–498 7/4/17 3:06 PM www.downloadslide.com 590 SUBJECT INDEX Sales tax, 158, 161, 280 Samples, free, 496, 498 Sampling, 386 Saturated trading area, 260 Saturation analysis, 260–261 SBD (secondary business districts), 268 Scenario analysis, 525–526 Scrambled merchandising, 133–134, 336, 371 Seasonality, 88 Seasonal merchandise, 366 Secondary business districts (SBD), 268 Secondary data advantages/disadvantages of, 224 explanation of, 222 external sources of, 226–227 internal sources of, 224–225 Secondary trading area, 247 Security breaches, 215 Security personnel, 338 Selection leaders, 463 Selective distribution, 29 Selfie pay, 332 Self-scanning checkout, 60, 329, 344–345 Self-service, 338 Selling against the brand, 434 Selling space, 470 Semantic differential, 228 Separate store organization, 300 Service leaders, 463 Service retailing abilities for successful, 68 characteristics of, 58–59 consumer perceptions of, 59 vs customer service, 58 vs goods retailing, 57 improving, 68–70 types of, 57–58 Shoplifting, 399, 400 Shopper’s remorse, 400 Shopping behavior attitudes and, 197–199 consumer shopping orientation, 430–431 cross-shopping, 199–200, 336 customer loyalty and, 206 decision-making process, 200–204 environmental factors and, 208 factors affecting, 190 in global markets, 198 of hybrid consumers, 196 impulse purchases, 204–205 in-home, 197 lifestyle and demographics in, 194–196 Z05_BERM4672_13_GE_SIDX.indd 590 market segment influences, 197 online grocery shopping, 188–189 online/mobile, 197 outshopping, 197 store atmosphere and, 476–479 Shopping carts, 477–478 Shopping-oriented retailers, 278 Simulation (research method), 229–230 Single-channel retailing, 152, 153 Site evaluation evaluation checklist, 276 overall rating, 281 parking facilities, 276–277 placement in site location, 278 store composition, 278 terms of occupancy, 268, 279–281 traffic counts, 275–276 transportation, 277–278 Site selection See also Store location; Trading-area analysis general location choice, 274–275 location types, 265–274 retailing careers in, 271 specific location choice, 278 steps in, 265 Situation analysis explanation of, 73 financial resources in, 79–80 good/service category in, 77–78 management alternatives in, 77 organizational mission in, 73–75 ownership alternatives in, 75–77 personal abilities in, 78–79 time demands in, 79–80 Size caps, 281 Skill sets, in situation analysis, 78–79 Slotting allowances, 388 Social class, 192, 194 Social media as advertising media, 487, 488 marketing apps, 482 as public relations media, 490 retail image and, 461–462 in total retail experience, 35–36 Social responsibility ethics and, 346 explanation of, 63–64 in global retailing, 470 in retailing strategy, 34 Software assortment, 379–380 category management, 380 facial recognition, 332 lease management, 280 markdown optimization, 441 merchandise forecasting and budgeting, 378 merchandising plans, 378–380 retail planning, 82 store planning, 361 Sole proprietorships, 75 Solutions selling, 477 Sorting process, 27 Source tagging, 398 Space management, 336, 470 Special events, 496, 498 Specialog, 157 Specialty direct marketers, 154 Specialty stores, 138, 142–143 Spin-offs, 322–323 Spontaneous shoppers, 199 Staggered markdown policy, 449 Standardization, 97 Standard merchandise classification, 412 Staple merchandise, 366 Status-oriented consumers, 431 Stimulus, 201 Stockholder satisfaction, 81 Stocking, 389–390 Stockouts, 383, 423 Stock-to-sales method, 416 Stock turnover, 375, 421–422 Storability product groupings, 471 Store atmosphere explanation of, 464 exterior features, 465–466 interior displays, 473–474 interior features, 468–470 in retail strategy mix, 131 shopping behavior and, 197 store layout, 470–473 Store brands, 199, 366, 372–374 Store composition, in site evaluation, 278 Store entrances, 466 Store fixtures, 469 Storefronts in E-retailing, 474–475 traditional, 465–466 Store layout in E-retailing, 475–476 traditional, 470–473 Store location See also Site evaluation; Site selection; Trading-area analysis as controllable variable, 86, 88 importance of, 241–242 isolated stores, 265–266 legal restrictions and, 89 one-hundred percent location, 275 planned shopping centers, 269–274 7/4/17 3:06 PM www.downloadslide.com in retail strategy mix, 131 steps in choosing, 242 unplanned business districts, 266–269 Store maintenance, 338–339 Store managers, 296 Stores See also specific types of stores such as department stores category killer, 143, 147 destination, 131, 248 isolated, 265–266 maintenance of, 338–339 parasite, 248 planning software for, 361 pop-up, 277 prototype, 335 size and format of, 335–336 size caps on, 281 space management in, 336, 470 string, 269 Store security merchandise security, 397, 399–400, 401 personal security, 341–342 Stores-within-a-store, 120 Storewide clearance, 449 Straight commission, 311 Straight leases, 280 Straight salary, 311 Straight (gridiron) traffic flow, 471 Strategic profit model, 319–320 Strategic retail planning See Retail strategy Strategy mix See Retail strategy mix String location, 269 Substitute goods and services, 371 Succession planning, 113 Supercenters, 141 Supermarkets, 138, 139–140 Supervision, of employees, 311–313 Suppliers information about, 384–385 information needs, 213 pricing and, 431–432, 433–434 retailer relationships, 28–29, 82, 385, 387 selecting, 385–386, 387 types of, 385, 386 Supply chain management, 345–346, 394 Surveys customer satisfaction, 54 as primary data source, 227 in trading-area analysis, 250 Sweepstakes, 496 Z05_BERM4672_13_GE_SIDX.indd 591 SUBJECT INDEX T Tactics, in retail strategy, 88–90 Tall organization hierarchy, 297 Target market demographic characteristics of, 192 marketing techniques for, 84–85, 206 retail organization and, 293–294 selection of, 84 strategy examples, 206–208 Taxes business, 280 on profit-and-loss statement, 316 sales, 158, 161, 280 Technology big data, 206, 378 concierge services and, 162 customer service and, 62, 145 digital rewards programs, 115 in direct marketing, 158 for energy management, 340 GIS software, 244–247 in global retailing, 123 impulse purchases and, 329 jobs listings and applications, 308 lease management software, 280 location-sensitive offers, 37 markdown optimization software, 441 mobile beacons, 224 planning software, 529 point-of-sale (POS) systems, 60, 332, 344–345, 415 relationship retailing and, 59–62 retailing careers in, 155 retail planning software, 82 security breaches, 215 smartphone coupons, 504 in store image, 469 store planning software, 361 supply chain management, 345–346 3D scanning and printing, 462 as uncontrollable variable, 88 video kiosks, 61–62, 135, 153, 172 Telemarketing, 161 Telephone directory advertising, 486–487 Television advertising, 486, 487 Television retailing, 157–158 Terms of occupancy, 268, 279–281 Theme-setting displays, 474 Third-party logistics (3PL), 394 “30-day rule,” 155 Threats explanation of, 73 in global retailing, 96–98 3D scanning and printing, 462 3PL (third-party logistics), 394 TIGER data, 244, 245, 256 Time demands, 79–80 591 Time pressures (poverty of time), 195, 198 Time utilization, 193, 194 Top-down budgeting, 325 Top-down space management, 336 Total retail experience, 35–36 Trade shows, 384 Trading-area analysis benefits of, 243–244 chief factors in, 253–255 competition, 259–260 computerized models for, 250–251 economic base, 253, 258–259 geographic information systems for, 244–247 Huff’s law, 251–252 population, 256–258 Reilly’s law, 251 retailing careers in, 260 saturation, 260–261 Trading-area overlap, 243 Trading areas characteristics of, 253–255 examples of desirable, 253 for existing store, 249–250 explanation of, 242 fringe, 247 for new store, 250–253 overstored, 260 primary, 247 saturated, 260 secondary, 247 size and shape of, 247–249 understored, 260 Traditional job description, 307 Traffic counts, in site evaluation, 275–276 Traffic flow, in store layout, 471 Transit advertising, 487 Transportation, 277–278, 396 Trend analysis, 250 U Unbundled pricing, 446 Uncontrollable variables, 85, 87–88 Understored trading area, 260 Unitary elasticity, 430 Unit control systems, 405, 418–420 Unit-pricing laws, 433 Universal Product Code (UPC), 220, 344, 420 Unplanned business districts central business districts, 266–268 explanation of, 266 neighborhood business districts, 268–269 secondary business districts, 268 7/4/17 3:06 PM www.downloadslide.com 592 SUBJECT INDEX UPC (Universal Product Code), 220, 344, 420 Upcycling, 393 Upscale orientation, 428 Usage rate, 423 V Value cost containment and, 138 in customer relations, 50 explanation of, 46–48 pricing strategy and, 428 Value chain, 47 Value delivery system, 56 Variable costs, 326 Variable markup policy, 441 Variable pricing, 444–445 Variables controllable, 85–87 uncontrollable, 85, 87–88 Variety stores, 138, 145–146 Vehicular traffic, 276 Vending machines, 163–164 Vendor-managed inventory (VMI), 398 Z05_BERM4672_13_GE_SIDX.indd 592 Vendors See Suppliers Vertical cooperative advertising agreements, 489 Vertical fashion trend, 369 Vertical marketing system explanation of, 121–123 marketplace niche, 112 Vertical price fixing, 431–432 Vertical retail audit, 528 Video kiosks growth of, 135 as nontraditional retailing, 153, 172 retail interaction and, 61–62 Virtual shopping environments, 230 Visibility, of store location, 278, 467 Visual merchandising, 464 VMI (vendor-managed inventory), 398 Web users, 167 See also E-retailing Weeks’ supply method, 415 Weighted application blanks, 308 Wheel of retailing theory, 131–133 White Pages listings, 486–487 Wholesalers channel control by, 123 pricing and, 431–432, 433–434 Width of assortment, 370 Wish-list programs, 478–479 WOM (word of mouth), 500 Women, in retailing careers, 304–305, 445 Word of mouth (WOM), 500 Workload forecasts, 337 World Wide Web, 164 See also E-retailing W Y Want book (want slip), 383 Warehouse stores, 138, 142 Warehousing, 396–397 Wealth disparity, 198 Web-based advertising, 486, 487 Yellow pages advertising, 486–487 Yield management pricing, 445 Z Zero-based budgeting, 315–316 7/4/17 3:06 PM ... Store manager Location A Store manager Location B COMBINATION ORGANIZATION CHART Manager Location B Lingerie manager Ladies’ outerwear manager GEOGRAPHIC ORGANIZATION CHART Manager Location A Controller... manager Men’s outerwear manager Sales promotion manager Store operations manager Vice-president Merchandise manager Manager Location A Manager Location B Personnel manager Manager Location A. .. A Manager Location B Men’s outerwear manager Store operations manager Manager Location A Manager Location B Controller Manager Location A Manager Location B Omnichannel manager Logistics manager