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. Trend

    The general direction of a market or of the price of an asset. ...
  4. Cash Conversion Cycle - CCC

    A metric that expresses the length of time, in days, that it ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors ...
  6. Data Mining

    A process used by companies to turn raw data into useful information. ...
Related Articles
  1. Professionals

    Advertising, Crocodiles And Moats

    Memorable advertising is a brick in the fortress that keeps competitors at bay.
  2. Fundamental Analysis

    Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.
  3. Active Trading Fundamentals

    An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.
  4. Economics

    Evaluating Grocery Store Stocks

    Retail grocers are no longer a homogeneous group selling products in the same manner. Find out how to evaluate these companies.
  5. Active Trading Fundamentals

    Leading Indicators Of Behavioral Finance

    Discover how put-call ratios and moving averages can be used to analyze investor behavior.
  6. Entrepreneurship

    How can I become a venture capitalist?

    Find out what it takes to become a venture capitalist, and read about some of the primary attributes private equity firms look for in a potential hire.
  7. Entrepreneurship

    How do ridesharing companies like Uber make money?

    Discover the services a transportation company such as Uber provides and how the premiere ridesharing company operates and makes money.
  8. Entrepreneurship

    How Steve Jobs Changed The World

    As an innovator and visionary, Steve Jobs’s accomplishments can be held on a pedestal with the likes of Microsoft’s Bill Gates, Google’s Larry Page and Sergey Brin and Facebook’s Mark Zuckerberg.
  9. Investing

    A Look at the 5 Richest People in the World

    Who are the five richest people in the world and how did they manage that feat?
  10. Professionals

    Understanding Interpersonal Skills

    Interpersonal skills are the social skills people use to interact effectively with other people. A lack of good interpersonal skills may lead to unsuccessful personal relationships, as well as ...

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center