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22 Cards in this Set
- Front
- Back
Retail Institutions
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the basic format or structure of a business.
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what are the different ownerships of retailers
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Independently Owned
Chain-owned franchisee-owned leased departments Vertical marketing system Consumer cooperative |
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Independent Retailer
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Owns one retail unit. there are 2.3 independent retailers in the U.S.
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Ease of entry
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Low capital requirements, and relatively easy licensing provisions
Ease of entry leads to high competition |
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Chains
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a retailer who operates multiple outlets under common ownership.
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Franchising
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involves a contractual arrgangement between a franchisor and a retail franchisee, which allows the franchisee to conduct business under an established name and according to a given pattern of business.
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Product/trademark franchising
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a franshisee acquire the the identity of a franchisor by agreeing to ell the latter's products and/or operate under the latter's name.
Examples: Auto-dealers, Gas stations |
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Business format franchising
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A more interactive relationship between franchisor and franchisee. Franchisee receives assistance on site location, quality control, accounting systems, startup practices, management training, and responding to problems besides the right to sell goods an services.
Example: McDonalds. |
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What are the three structural arrangements which dominate retail franchising?
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manufacturer-retailer
Wholesaler-retailer Service sponsor-retailer |
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Manufacturer-retailer
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manufactureer gives independent franchisees the right to sell good and related services through a licensing agreement.
auto dealers, gas stations |
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Wholesailer-retailer: Voluntarty
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wholesaler sets up a franchise system and grants franchises to individual retailers
Auto stores, radio shack |
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Wholesaler-retailer: Cooperative
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a group of retailers sets up a franchise system and shares the ownership and operations of a wholesaling organization
Ace hardware |
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Service sponsor-retailer
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a service firm licenses individual retailers so they can offer specific service packages to consumers.
Hertz, hotels, fast food |
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constrained decision making,
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Franchisors limit franchisee involvement in the strategic planning process
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Leased department
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a department in a retail store--usually a department, discount, or specialty store-- that is rented to an outside party.
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Vertical marketing system
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consists of all the levels of independently owned businesses along a channel of distribution.
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What are the different types of Vertical marketing systems?
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Independents system
Partially integrated system fully integrated system |
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Independent system
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Three levels of independently owned firms: manufacturer, wholesalers, retailers
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Partially integrated system
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two independently owned businesess along a channel perform all production and distribution functions
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fully integrated system
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one firm performs all production and distribution functions
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Channel control
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one member of a distribution channel dominates the decisions made in that channel due to the power it possesses
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Consumer Cooperative
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is a retail firm owned by its customer members
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