Online Glossary

Canned Sales Presentation A memorized, repetitive speech given to all customers interested in a particular item.

Capital Expenditures Retail expenditures that are long-term investments in fixed assets.

Case Display Employed to exhibit heavier, bulkier items than racks hold.

Cash Flow Relates the amount and timing of revenues received to the amount and timing of expenditures made during a specific time period.

Category Killer Store An especially large specialty store featuring an enormous selection in its product category and relatively low prices. It draws consumers from wide geographic areas.

Category Management A relationship-oriented technique that some firms, especially supermarkets, are beginning to use to improve shelf-space productivity.

CBD See Central Business District.

Census of Population Supplies a wide range of demographic data for all U.S. cities and surrounding vicinities. Data are organized on a geographic basis.

Central Business District (CBD) The hub of retailing in a city. It is the largest shopping area in that city and is synonymous with the term "downtown." The CBD exists where there is the greatest concentration of office buildings and retail stores.

Centralized Buying Organization Occurs when a retailer has all purchase decisions emanating from one office.

Chain Multiple retail units under common ownership that engage in some level of centralized (or coordinated) purchasing and decision making.

Channel Control Occurs when one member of a distribution channel can dominate the decisions made in that channel by the power it possesses.

Channel of Distribution Comprises all of the businesses and people involved in the physical movement and transfer of ownership of goods and services from producer to consumer.

Class Consciousness The extent to which a person desires and pursues social status.

Classification Merchandising Allows firms to obtain more financial data by subdividing each specified department into further categories for related types of merchandise.

COD (Collect on Delivery) Lets customers have products delivered to them before payment is made.

Cognitive Dissonance Doubt that occurs after a purchase is made, which can be alleviated by customer after-care, money-back guarantees, and realistic sales presentations and advertising campaigns.

Collect on Delivery See COD.

Combination Store Unites supermarket and general merchandise sales in one facility, with general merchandise typically accounting for 25 percent to 40 percent of total store sales.

Community Shopping Center A moderate-sized, planned shopping facility with a branch department store, a variety store, and/or a category killer store, in addition to several smaller stores. About 20,000 to 100,000 people, who live or work within 10 to 20 minutes of the center, are served by this location.

Comparative Advertising Messages comparing a retailer's offerings with those of competitors.

Compensation Includes direct monetary payments (such as salaries, commissions, and bonuses) and indirect payments (such as paid vacations, health and life insurance benefits, and retirement plans).

Competition-Oriented Pricing An approach in which a retailer sets its prices in accordance with competitors'.

Competitive Advantages The distinct competencies of a retailer relative to competitors.

Competitive Parity Method A promotional budgeting technique by which a retailer's budget is raised or lowered based on the actions of competitors.

Competitive Pricing A marketing-oriented strategy whereby a service retailer sets its prices on the basis of the prices charged by competitors.

Computerized Checkout Enables retailers to efficiently process transactions and have strict inventory control. In a UPC-based system, cashiers manually ring up sales or pass items over or past optical scanners. Computerized registers instantly record and display sales, customers get detailed receipts, and all inventory data are stored in a computer memory bank.

Concentrated Marketing Selling goods and services to one specific group.

Consignment Purchase Items not paid for by retailer until they are sold. The retailer can return unsold merchandise. Title is not taken by the retailer until the final sale is completed.

Constrained Decision Making Excludes franchisees from or limits their involvement in the strategic planning process.

Consumer Behavior Involves the process by which people determine whether, what, when, where, how, from whom, and how often to purchase goods and services.

Consumer Cooperative A retail firm owned by its customer members. A group of consumers invests in the company, receives stock certificates, elects officers, manages operations, and shares the profits or savings that accrue.

Consumer Decision Process The stages a consumer goes through in buying a good or service: stimulus, problem awareness, information search, evaluation of alternatives, purchase, and post-purchase behavior. Demographics and life-style factors affect this decision process.

Consumerism Involves the activities of government, business, and independent organizations that are designed to protect individuals from practices infringing upon their rights as consumers.

Contingency Pricing An arrangement whereby the retailer does not get paid until after the service is performed. and payment is contingent on the service's being satisfactory.

Control The phase in the evaluation of a firm's strategy and tactics in which a semiannual or annual review of the company takes place.

Controllable Variables Those aspects of business that the retailer can directly affect (such as hours of operation and sales personnel).

Control Units Merchandise categories for which data are gathered.

Convenience Store A food-oriented retailer that is well located, is open long hours, and carries a moderate number of items. It is small, has average to above-average prices, and average atmosphere and customer services.

Conventional Supermarket A departmentalized food store that emphasizes a wide range of food and related products; sales of general merchandise are rather limited.

Cooperative Advertising Occurs when a manufacturer or wholesaler and a retailer, or two or more retailers, share advertising costs.

Cooperative Buying The procedure used when a group of independent retailers gets together to make quantity purchases from a supplier.

Core Customers Consumers with whom retailers should seek to nurture long relationships. They should be singled out in a firm's data base.

Corporation A retail firm that is formally incorporated under state law. It is a legal entity apart from individual officers (or stockholders).

Cost Complement The average relationship of cost to retail value for all merchandise available for sale during a given time period.

Cost Method of Accounting Requires the retailer's cost of every item to be recorded on an accounting sheet and/or coded on a price tag or merchandise container. When a physical inventory is conducted, every item's cost must be ascertained, the quantity of every item in stock counted, and the total inventory value at cost calculated.

Cost of Goods Sold The amount a retailer has paid to acquire the merchandise sold during a given time period. It equals the cost of merchandise available for sale minus the cost value of ending inventory.

Cost-Oriented Pricing An approach in which a retailer sets a price floor, the minimum price acceptable to the firm so it can reach a specified profit goal. A retailer usually computes merchandise and retail operating costs and adds a profit margin to these figures.

Cost-Plus Pricing Occurs when a retailer adds its costs to desired profit margins to derive selling prices.

Credit Management Involves the policies and practices retailers follow in receiving payments from their customers.

Cross-Training Enables personnel to learn tasks associated with more than one job.

Culture A distinctive heritage shared by a group of people. It influences the importance of family, work, education, and other concepts by passing on a series of beliefs, norms, and customs.

Curving (Free-Flowing) Traffic Flow Presents displays and aisles in a free-flowing pattern.

Customary Pricing A pricing strategy whereby a retailer sets prices for goods and services and seeks to maintain them for an extended period.

Customer Loyalty (Frequent Shopper) Programs Intended to reward a retailer's best customers, the ones with whom it wants to form long-lasting relationships.

Customer Service Refers to the identifiable, but sometimes intangible, activities undertaken by a retailer in conjunction with the basic goods and services it sells.

Customer Space The area required by shoppers that contributes greatly to a store's atmosphere. It can include a lounge, benches and/or chairs, dressing rooms, rest rooms, a restaurant, vertical transportation, a nursery, parking, and wide aisles.

Cut Case An inexpensive display, in which merchandise is left in the original carton.

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