Online Glossary

Rack Display An interior display that hangs or presents products neatly.

Random Sample See Probability Sample.

Rationalized Retailing A strategy involving a high degree of centralized management control combined with strict operating procedures for every phase of business.

Reach The number of distinct people exposed to a retailer's ads in a specified period.

Recommendations The stage in the research process during which the alternative approach to best solve a problem or issue is presented.

Recruitment The activity whereby a retailer generates a list of job applicants.

Reference Groups Influence people's thoughts and/or behavior. They may be classified as aspirational, membership, and dissociative.

Regional Shopping Center A large, planned shopping facility appealing to a geographically dispersed market. It has at least one or two full-sized department stores and 50 to 150 or more smaller retailers. The market for this center is 100,000-plus people, who live or work up to 30 minutes' driving time from the center.

Regression Model A computer site-selection model that develops a series of mathematical equations showing the association between potential store sales and various independent variables at each location under consideration.

Reilly's Law of Retail Gravitation The traditional means of trading area delineation that establishes a point of indifference between two cities or communities, so the trading area of each can be determined.

Relationship Retailing Exists when retailers seek to establish and maintain long-term bonds with customers, rather than act as if each sales transaction is a completely new encounter with them.

Rented-Goods Services The area of service retailing in which consumers lease and use goods for specified periods of time.

Reorder Point The stock level at which new orders must be placed.

Resident Buying Office An inside or outside buying organization that is usually situated in important merchandise centers (sources of supply) and provides valuable data and contacts.

Retail Audit The systematic examination and evaluation of a firm's total retailing effort or some specific aspect of it. Its purpose is to study what a retailer is presently doing, appraise how well the firm is performing, and make recommendations for future actions.

Retail Balance Refers to the mix of stores within a district or shopping center.

Retail Information System Anticipates the information needs of retail managers; collects, organizes, and stores relevant data on a continuous basis; and directs the flow of information to the proper retail decision makers.

Retailing Consists of those business activities involved in the sale of goods and services to consumers for their personal, family, or household use.

Retailing Concept Comprises these four elements: customer orientation, coordinated effort, value-driven, and goal orientation.

Retailing Effectiveness Checklist Lets a firm systematically assess its preparedness for the future.

Retail Institution Refers to the basic format or structure of a business. Institutions can be classified by ownership, store-based retail strategy mix, service versus goods retail strategy mix, and nonstore-based retail strategy mix.

Retail Life Cycle A theory asserting that institutions -- like the goods and services they sell -- pass through identifiable life-cycle stages: innovation, accelerated development, maturity, and decline.

Retail Method of Accounting A way by which the closing inventory value is determined by calculating the average relationship between the cost and retail values of merchandise available for sale during a period.

Retail Organization How a firm structures and assigns tasks (functions), policies, resources, authority, responsibilities, and rewards so as to efficiently and effectively satisfy the needs of its target market, employees, and management.

Retail Performance Index Encompasses five-year trends in revenue growth and profit growth, and a six-year average return on assets.

Retail Promotion Any communication by a retailer that informs, persuades, and/or reminds the target market about any aspect of that firm.

Retail Reductions Represent the difference between beginning inventory plus purchases during the period and sales plus ending inventory. They should encompass anticipated markdowns, employee and other discounts, and stock shortages.

Retail Strategy The overall plan guiding a retail firm. It has an influence on the firm's business activities and its response to market forces, such as competition and the economy.

Return on Assets (ROA) A performance ratio based on a retailer's net sales, net profit, and total assets.

Return on Net Worth A performance measure based on a retailer's net profit, net sales, total assets, and net worth.

Revolving Credit Account Allows a customer to charge items and be billed monthly on the basis of the outstanding cumulative balance.

ROA See Return on Assets.

Robinson-Patman Act Bars manufacturers and wholesalers from discrimination in price or sales terms in selling to individual retailers if these retailers are purchasing products of "like quality" and the effect of such discrimination would be to injure competition.

Routine Decision Making Takes place when a consumer buys out of habit and skips steps in the purchase process.

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