Barcode

AAA

DEFINITION of 'Barcode'

A graphical representation of a product's identifying information formed by a two-dimensional pattern of black and white shapes. Barcodes are able to be read by optical devices, such as a barcode reader or scanner, and are most commonly composed of parallel black and white lines. Barcodes are used to automate the transfer of product information, such as price, from the product to an electronic system, such as a cash register.

INVESTOPEDIA EXPLAINS 'Barcode'

Barcodes can allow stores to track inventory easily if linked to a database, which in turn helps companies track trends in consumer habits, order more inventory and adjust prices. If managed properly, they can help reduce the cash conversion cycle by lowering inventory and thus lowering the days inventory. They are on almost any product you can buy at the store. The most commonly used form of barcode is the Universal Product Code, first introduced in the 1970s for use in grocery stores. They allow stores to track inventory easily if linked to a database, which in turn helps companies track trends in consumer habits, order more inventory and adjust prices.

RELATED TERMS
  1. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  2. Bandwagon Effect

    A psychological phenomenon whereby people do something primarily ...
  3. Market Psychology

    The overall sentiment or feeling that the market is experiencing ...
  4. Cash Conversion Cycle - CCC

    A metric that expresses the length of time, in days, that it ...
  5. Data Mining

    A process used by companies to turn raw data into useful information. ...
  6. Trend

    The general direction of a market or of the price of an asset. ...
Related Articles
  1. Advertising, Crocodiles And Moats
    Professionals

    Advertising, Crocodiles And Moats

  2. Analyzing Retail Stocks
    Fundamental Analysis

    Analyzing Retail Stocks

  3. An Introduction To Behavioral Finance
    Active Trading Fundamentals

    An Introduction To Behavioral Finance

  4. Evaluating Grocery Store Stocks
    Economics

    Evaluating Grocery Store Stocks

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center