Layaway Plan Allows customers to give a retailer deposits to hold products. When customers complete payments, they take the items.

LBO See Leveraged Buyout.

Leader Pricing Occurs when a retailer advertises and sells selected items in its goods/service assortment at less than usual profit margins. The goal is to increase customer traffic in the hope of selling regularly priced goods and services in addition to the specially priced items.

Leased Department A department in a retail store -- usually a department, discount, or specialty store -- that is rented to an outside party.

Leveraged Buyout (LBO) An ownership change that is mostly financed by loans from banks, investors, and others.

Liabilities Any financial obligations a retailer incurs in operating a business.

Life-Styles The ways in which individual consumers and families (households) live and spend time and money.

LIFO Method Assumes new merchandise is sold first, while older stock remains in inventory. It matches current sales with the current cost structure.

Limited Decision Making Occurs when a consumer uses each of the steps in the purchase process but does not need to spend a great deal of time on each of them.

Limited-Line Store See Box Store.

Logistics The total process of moving goods from a manufacturer to a customer in the most timely and cost-efficient manner possible.

Loss Leaders Items priced below cost to lure more customer traffic. Loss leaders are restricted by state minimum-price laws.

---

© Prentice-Hall, Inc. A Simon & Schuster Company Upper Saddle River, New Jersey 07458

Legal Statement