Online Glossary

Bait Advertising An illegal practice whereby a retailer lures a customer by advertising goods and services at exceptionally low prices; then, once the customer contacts the retailer, he or she is told the good/service of interest is out of stock or of inferior quality. A salesperson tries to convince the customer to purchase a better, more expensive substitute that is available. The retailer has no intention of selling the advertised item.

Bait-and-Switch Advertising See Bait Advertising.

Balanced Tenancy Occurs when stores in a planned shopping center complement each other in the quality and variety of their product offerings. The kind and number of stores are linked to the overall needs of the surrounding population.

Balance Sheet Itemizes a retailer's assets, liabilities, and net worth at a specific point in time; it is based on the principle that assets equal liabilities plus net worth.

Basic Stock List Specifies the inventory level, color, brand, style category, size, package, and so on for every staple item carried by the retailer.

Basic Stock Method An inventory-level planning tool wherein a retailer carries more items than it expects to sell over a specified period:

Battle of the Brands When retailers and manufacturers compete for shelf space allocated to various brands and for control over display locations.

Benchmarking Occurs when the retailer sets its own standards and measures performance based on the achievements of its sector of retailing, specific competitors, high-performance firms, and/or the prior actions of the company itself.

Bifurcated Retailing Denotes the decline of middle-of-the-market retailing due to the popularity of both mass merchandising and positioned retailing.

Book Inventory System Keeps a running total of the value of all inventory on hand at cost at a given time. This is done by regularly recording purchases and adding them to existing inventory value; sales transactions are then subtracted to arrive at the new current inventory value (all at cost).

Bottom-Up Space Management Approach Exists when planning starts at the individual product level and then proceeds to the category, total store, and overall company levels.

Box (Limited-Line) Store A food-based discounter that focuses on a small selection of items, moderate hours of operation (compared to supermarkets), few services, and limited national brands.

BPI See Buying Power Index.

Budgeting Outlines a retailer's planned expenditures for a given time period based on its expected performance.

Bundled Pricing Involves a retailer providing a number of services for one basic price.

Business Format Franchising An arrangement in which the franchisee receives assistance on site location, quality control, accounting systems, startup practices, management training, and responding to problems -- besides the right to sell goods and services.

Buying Power Index (BPI) A measure of a geographic area's market characteristics, expressed in terms of the area's percentage of U.S. effective buying income, the area's percentage of U.S. retail sales, and the area's percentage of U.S. population).

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