Usually a 3-5 mile radius from the retailer; generates 60-65% of customers
What is the primary trade zone?
100
This is a discount provided for the retailer performing an advertising or promotional service for the manufacturer.
What is a promotional discount?
100
This pricing objective seeks to obtain as much profit as possible.
What is profit maximization?
200
The market segment(s) selected based on size, accessibility, competition, and likelihood of purchase
What is a target market?
200
This represents merchandise that cannot be accounted for due to theft, loss, or damage.
What is shrinkage?
200
This is any reduction in the price of an item from its initially established price.
What is a markdown?
300
Is when there is no better use for a site than the retail store that is being planned for that site.
What is 100 percent location?
300
This refers to the number of different merchandise lines that the retailer stocks in the store.
What is variety?
300
This is an extreme form of leader pricing where an item is sold below a retailer's cost.
What is loss leader?
400
These are stores in a shopping center that are the most dominant and are expected to draw customers to the shopping center.
What is an anchor store?
400
This is a method of charging for transportation where the buyer assumes title to the goods at the factory and pays all transportation costs from the vendor's factory.
What is free on board (FOB) factory?
400
This is a range of prices for a particular merchandise line that appeals to a certain market segment.
What is price zone?
500
This is a computerized system that combines physical geography with cultural geography.
What is a geographic information system (GIS)?
500
This occurs when an employee of one of the retailer's vendors steals merchandise as it is delivered to the retailer.
What is vendor collusion?
500
This occurs when the price of each unit in a multiple-unit package is less than the price of each unit if it were sold individually.