Retail Study Guide – Exam 2



Retail Study Guide – Exam 2

Levy and Weitz, Chapters 7-14

The exam covers chapters 7-14 in the text in addition to class discussions and our guest speakers. Below are some areas on which to focus as you prepare.

What is a Trading Area?

Trading Area Analysis – How do retailers determine a trade area?

Site Selection – What factors should be considered?

Geographical Information Systems (GIS)

Types of Locations

Central business district (CBD)

Destination stores, anchor stores, kiosks, power center

Size and shape of trading areas

Primary, secondary, and fringe trading areas

Buying Power Index, Spending Potential Index

Index of Retail Saturation

Huff Gravity Model

Reilly’s Law of Retail Gravitation – point of indifference

Human Resource Management

Recruitment and Selection

Employee turnover

Training and Motivating Employees

Testing Methods

Compensation

Management styles, empowerment, mentoring

Procedural justice, distributive justice

Mystery Shoppers

Merchandise Planning and Management – Forecasting, planning investments in inventory, reductions

Inventory turnover – managing and calculating

Discounts and dating

Stock-to-Sales ratio, Sales-to-Stock ratio

Open-to-Buy, Planned Purchases, Purchase Commitments

GMROI: Gross margin percentage X Sales-to-stock ratio

Stock-keeping unit

Category management

Model Stock Plan

Staple merchandise management – safety stock, backup stock, lead time, order point

Sell-through analysis, markdown money

National and private label brands

Wholesale market, trade shows

Co-op advertising

Negotiating with Vendors

MSRP, Resale price maintenance

Robinson-Patman Act – forbids vendors from offering different terms and conditions to different retailers for the same merchandise and quantity

Slotting allowances, slotting fees

Exclusive dealing agreements – vendor restricts a retailer to carry only its products and nothing from competing vendors; illegal if considered anticompetitive

Tying contract – vendor requires a retailer to take a product it doesn’t necessarily want to get a product it does want; illegal if they lessen competition or create a monopoly

Reverse auctions

Support services for the buying process – Resident Buying Offices, Retail Exchanges

Information Systems and Supply Chain Management (Chapter 10)

Benefits to vendors and retailers of collaborating on supply chain management

Information technology (IT) developments that are facilitating vendor-retailer communications

RFID – What is it and what are its benefits? What is slowing its adoption?

Universal Product Code (UPC)

Data warehouse

Electronic Data Interchange (EDI) – How does it work? What are the benefits?

Customer Relationship Management

Customer Loyalty, Customer Retention, Frequent Shopper Programs

Cross-selling

Lifetime Value of a Customer

RFM Analysis (recency, frequency, monetary), data mining, market basket analysis

Customer pyramid and the 80-20 rule

Share of wallet

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