chapter 13

Question 1

Companies have to compete with other companies for shelf space of their brands and products at major retailers, like Target. How do companies incentivize retailers to carry their products and to give optimal shelf space?

Answer 1

manufactures use trade promotion to motivate retailers to carry brand and provide good shelf space

Question 2

What is the difference between a multichannel and an omni-channel?

Answer 2

-multi-channel = multiple siloed channels, consumers uses only one channels for a purchase

-omni-channel = multiple connected channels, consumers use multiple channels for a purchase

Question 3

What is psychological ownership and why does this matter for in-person (vs. online) retailing?

Answer 3

-feeling of “mine”
-psychological attachment to product
-pleasant feelings from touch enhance the evaluation
-not purchasing a physically held product feels uncomfortable