RBSE SS Voc Retail flashcards

36 cards. Read the term and the definition here. The deck at the top of this page is optional.

Retail

The sale of goods or services to the final consumer for personal or household use, not for resale. It is the last stage of the supply chain.

Omnichannel retail

A retail strategy that integrates physical stores, online platforms, and mobile apps to provide a seamless and consistent customer experience across all channels.

Franchising

A business model where the franchisor grants the franchisee the right to use its brand, systems, and products in exchange for fees and royalties, reducing risk but limiting independence.

Retail career ladder

The typical progression from sales associate to senior associate, team leader, department manager, assistant store manager, store manager, and regional manager.

SERVQUAL

A service quality model measuring five dimensions: reliability, assurance, tangibles, empathy, and responsiveness. Reliability is the most important dimension to customers.

Cross-selling

Offering complementary products to a customer, such as a belt with trousers, to increase the total transaction value and meet additional needs.

Upselling

Persuading a customer to purchase a higher-value version of a product or an add-on, such as an extended warranty, to increase the sale amount.

Net Promoter Score

A loyalty metric calculated as the percentage of promoters (score 9–10) minus the percentage of detractors (score 0–6) on a likelihood-to-recommend question.

Customer lifetime value

The total profit a business can expect from a customer over the entire relationship, calculated as average purchase value × purchase frequency × customer lifespan.

Conversion rate

The percentage of store visitors who make a purchase, calculated as transactions divided by footfall, multiplied by 100. It measures sales effectiveness.

Shrinkage

The difference between recorded inventory and physical inventory, caused by theft, administrative errors, or vendor fraud. It is expressed as a percentage of sales.

Planogram

A diagram that shows the exact placement of products on shelves to maximize space productivity, ensure consistent brand presentation, and facilitate restocking.

Average transaction value

The average amount spent per transaction, calculated as total sales revenue divided by the number of transactions. It is a key retail performance indicator.

Visual merchandising

The practice of designing and displaying products to attract customers, increase sales, and create a positive brand experience through layout, lighting, and signage.

Rule of three

A visual merchandising principle suggesting that groups of three items are more visually appealing and memorable than other groupings, creating dynamic compositions.

Color blocking

A merchandising technique that groups products by color to create visual impact, highlight seasonal trends, and encourage impulse purchases.

AIDA model

A display design framework that guides customers from Attention to Interest, Desire, and Action, used to structure promotional and visual displays.

Economic Order Quantity

The order quantity that minimizes total inventory costs, calculated as the square root of (2 × annual demand × ordering cost) divided by holding cost per unit per year.

Reorder point

The inventory level at which a new order should be placed, calculated as (average daily demand × lead time) + safety stock.

ABC analysis

An inventory classification method that categorizes items by value: A items are high value (about 20% of items, 80% of value), B moderate, and C low value.

Just-in-Time inventory

An inventory strategy where goods are received only as needed to reduce holding costs, requiring reliable suppliers and accurate demand forecasting.

Inventory turnover ratio

A measure of how efficiently inventory is managed, calculated as cost of goods sold divided by average inventory. A higher ratio indicates faster turnover.

Marketing mix

The combination of Product, Price, Place, and Promotion (the 4Ps) used to market products; in retail, People, Process, and Physical evidence are added to form the 7Ps.

Loyalty program

A structured reward system (points, tiers, memberships) that encourages repeat purchases, increases customer retention, and collects data for personalized marketing.

ROMI

Return on marketing investment, calculated as (incremental profit from campaign − campaign cost) divided by campaign cost, multiplied by 100.

Brand positioning

The perception of a retail store in the customer's mind relative to competitors, built through consistent messaging, service, and product assortment.

GST invoice

A tax document that must include supplier name, address, GSTIN, invoice number and date, description of goods, quantity, taxable value, tax rate, tax amount, and total.

UPI

Unified Payments Interface, a real-time mobile payment system in India that allows instant bank-to-bank transfers using a virtual payment address.

POS system

Point of Sale system used to scan items, calculate totals and taxes, process payments, generate receipts, update inventory, and produce sales reports.

PCI DSS

Payment Card Industry Data Security Standard, a set of security requirements for handling card payments, including never storing CVV or full magnetic stripe data.

7 Cs of communication

Principles for effective communication: clear, concise, concrete, correct, coherent, complete, and courteous, ensuring the message is understood as intended.

CRM

Customer Relationship Management system that stores customer purchase history and preferences, enabling personalized service and targeted promotions.

Data privacy

The protection of customer data through consent, purpose limitation, and security, as required by laws such as India's Personal Data Protection Bill and the EU's GDPR.

Break-even point

The sales volume at which total revenue equals total costs, calculated as fixed costs divided by (selling price per unit − variable cost per unit).

MUDRA loan

A government-backed loan scheme in India under Pradhan Mantri MUDRA Yojana, providing funding to small retail businesses and micro-enterprises.

Udyam registration

The Indian government's online registration for micro, small, and medium enterprises (MSMEs), providing access to subsidies, loans, and other benefits.