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. Cash Conversion Cycle - CCC

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

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

    The general direction of a market or of the price of an asset. ...
  6. Days Sales Of Inventory - DSI

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

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center