MA225VC-4

Basic format or structure of a business. Institutions can be classified by
ownership, store-based retail strategy mix, and nonstore-based, electronic, and
nontraditional retailing. (p. 102)

Retailer that owns one retail unit. (p. 103)

Occurs due to low capital requirements and no, or relatively simple, licensing
provisions. (p. 103)

Retailer that operates multiple outlets (store units) under common ownership. It
usually engages in some level of centralized (or coordinated) purchasing and
decision making. (p. 106)

Contractual arrangement between a franchisor (a manufacturer, a wholesaler, or a
service sponsor) and a retail franchisee, which allows the franchisee to conduct
a given form of business under an established name and according to a given
pattern of business. (p. 108)

Arrangement in which the franchisee acquires the identity of the franchisor by
agreeing to sell the latter's products and/or operate under the latter's name.
(p. 108)

Arrangement in which the franchisee receives assistance in site location,
quality control, accounting, startup practices, management training, and
responding to problems—besides the right to sell goods and services. (p. 108)

Limits franchisee involvement in the strategic planning process. (p. 110)

Site in a retail store—usually a department, discount, or specialty store—that
is rented to an outside party. (p. 111)

All the levels of independently owned businesses along a channel of
distribution. Goods and services are normally distributed through one of three
types of systems: independent, partially integrated, and fully integrated. (p.
112)

Involves firms engaged in more than one type of distribution arrangement. This
enables those firms to appeal to different consumers, increase sales, share some
costs, and maintain a good degree of strategic control. (p. 113)

Occurs when one member of a distribution channel can dominate the decisions made
in that channel by the power it possesses. (p. 113)

Retail firm owned by its customer members. A group of consumers invests in the
company, elects officers, manages operations, and shares the profits or savings
that accrue. (p. 114)