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Setting and presentation are now critical factors in serving the customer.
As nonstore-based retailing continues to grow, retailers need to recognize that the index
of retail saturation may become less useful.
Inventory turnover refers to the number of times per year, on average, that a retailer
sells its inventory.
Retailers should attempt to maximize the profit on each transaction and not be
concerned about building a mutually beneficial, long-term relationship with their
customers.
The only prerequisite needed for the Internet's success is having enough consumers
with access.
An item that a buyer sees as being a risky purchase would be likely to have a
higher-than-normal markup percentage.
Don's Daily Donuts can only afford to spend $7,000 on advertising this month due the
adverse local economic impacts on sales. This is an example of utilizing the
task-and-objective method in determining the donut shop's advertising budget.
Markdowns taken early speed the movement of merchandise, and also generally enable
the retailer to take less of a markdown per unit to dispose of the goods.
Retailers are prevented by law from engaging in scrambled merchandising as it would
divert business away from the more traditional outlets; even if these older, traditional
outlets are inefficient.
The use of horizontal cooperative advertising can create substantially more store traffic
than having each individual retailer run a separate advertisement.
