Chapter 1: Retailing Overview

Question 1

Define the concept of retailing.

Answer 1

Retailing refers to any business activity which adds value to the products and services sold to end consumers.

This involves a set of final activities and steps needed to ensure that products or services are subsequently transacted and secured into consumers’ hands.

It can be performed by any retailer or retail firm that sells a product and/or provides a service to the final consumers for their own household consumption.

Question 2

Explain the importance of retailing.

Answer 2

Providing wide assortments of products
- Buy other products at the same time

Bulk breaking
- Buy it in quantities customers want

Stocking inventory
- Buy it at a convenient place when you want it

Providing many other value-added services
- See it before you buy; get credit; layaway

Question 3

Describe retailing mix.

Answer 3

Product
Promotion
Place
Price
Presentation
Personnel

Question 4

Explain green retailing.

Answer 4

Green retailing is an approach to managing a retail business that takes advantage of environmentally friendly processes.

Green retailing provides retailers with business sustainability, a positive brand image and a way to show customers their social responsibilities by reducing the environmental impact while simultaneously delivering significant financial benefits.

There are two benefits for retailers to consider eco-friendly practices:
- Consumer awareness on eco-friendly goods and practices has increased in the last decade. They are willing to spend more on ‘green’ and organic products, and this serves as an opportunity for retailers to expand their offerings.
- Retailers have realized that developing an eco-friendly brand would provide sustainable competitive advantage and differentiate their products from their competitors in a crowded marketplace.

Question 5

Define e-tailing.

Answer 5

Electronic retailing (or e-tailing) simply defines any business-to-consumer (B2C) transaction taking place over the Internet.

It is categorized as non-store retailing. Simply put, e-tailing is the sale of goods online.

Question 6

Explain the concept of halalan toyyiban.

Answer 6

Halalan toyyiban means allowed and permissible for consumption in relation to Shariah law as long as they are safe and not harmful. Toyyiban denotes food that is safe, clean, nutritious and of good quality.

Question 7

Elaborate on relationship retailing.

Answer 7

In retailing, retailers do not only serve customers with their physical goods but also with services that are tangible in nature.

This entails looking at the retail value-driven relationships and that retailers could provide to customers in ensuring positive shopping experience, satisfaction and subsequently promoting customer loyalty. Example: Free wrapping, send purchase items to your personal vehicle, points for loyalty cust, etc.

In applying relationship retailing with customers, factors such as customer base, customer service, customer satisfaction, loyalty programs and defection rates must be considered.

Question 8

Discuss management and entrepreneurship opportunities.

Answer 8

Management Opportunities
- Retailers employ people with expertise and interests in finance, accounting, human resource management, supply chain management and computer systems, as well as marketing. Retail managers are often given considerable responsibility early in their careers.

Entrepreneurial Opportunities
- Retailing also provides opportunities for people who wish to start their own business. An entrepreneur is a person who takes the initiative to pursue a new business venture through innovative means and is prepared to accept a certain degree of financial risk.