chapter 15 Retailing Flashcards
Retailing provides value to consumers in the form of (3) with significant impact on the economy.
benefits, services and utilities
____ is the largest retailer in the world
Walmart
there is a need for examining retailing institutions from different perspectives (3)
- form of ownership
- level of service
- merchandise line
3 types of ownership
Independent retailer, Corporate Chains or Contractual Systems.
levels of service
Self-service, limited-service, and full- service retailers
Merchandise line
How may different lines of products and the extent of assortment in each line that a store carries.
independent retailer
owned by individuals and provide a high level of personal service
Corporate Chains
involve multiple outlets under common ownership.
Centralization of decision making and purchasing is common in these institutions
the bay, Best Buy
Contractual System
involves independently owned stores that join together to act like a chain
what is franchise
A business firm (Franchisor) authorizes an individual or business (Franchises) through a contract to set up a business or retail outlet
Centralized decision making and purchasing are an advantage of __________________ ownership
corporate chain
What are some examples of new forms of self-service retailers?
include airlines’ use of self-service kiosks to check in and print boarding passes. Home building supply operations also use this approach.
Would a shop for big men’s clothes carrying pants in sizes 40 to 60 have a broad or deep product line?
yes.
They carry a considerable assortment (or depth) of a related line of items.
Non-store retailing occurs through (3)
direct marketing, direct selling, and automatic vending.
benefits of direct selling
It eliminates the cost of store and clerk;
It improves marketing efficiency;
Serve the particular need of each segment well
example of direct marketing
television home shopping, online retailing, telemarketing
what is direct selling
individual sale persons directly sell to customers out of a retailing environment. Such as door-to-door selling
difference between direct marketing and direct selling
individual salespeople reach out to consumers directly, whereas direct marketing is when a company markets directly to the consumer.
Successful catalogue retailers often send ________ catalogues to _____ markets identified in their databases.
specialty
niche
How are retailers increasing consumer interest and involvement in online retailing?
(1) Pay dues to become a member of an online discount service, (2) Use a shopping “bot”, (3) Go directly to online malls or online shopping directories, or (4) Go to a specific online retailer’s individual site.
Where are direct selling retail sales growing?
where door-to-door convenience is important and personalized service is needed
A retail store’s position is influenced by (3)
ownership, level of service, and merchandise lines
Keys to Positioning a store is to give it _____
an identity with a competitive advantage.
what is Maintained markup
is the difference between the final selling price and retailer cost; also called gross margin.
Setting prices for the merchandise =
setting mark-up and maintaining original mark-ups
what is Mark-downs
reducing price when the product does not sell. A discount may be applied
timing of mark-downs
A) As soon as the sales fall off to move the product and free-up valuable shelf space.
B) Others delay to avoid bargain hunters and preserve the image quality of the store.
strategy of retail pricing: Everyday Low Pricing
preserve the image of the store and the product
strategy of retail pricing: Everyday Fair Pricing
convey the image of the value pricing for the store and the product
Off-price retailing
Selling brand-name merchandise at lower than regular prices
Shrinkage
Breakage and theft of merchandise by customers and employees or the administrative error (the loss of inventory )
the four factors considered in the store management of a retailing strategy
- retailing pricing
- store location
- retail communication
- merchandise
Central business district
The oldest, the Downtown
50 to 150 stores attracting customers living within 8 to 16 km with two to three anchor stores
Regional shopping centres
location with one main department store and 20 to 40 smaller stores serving customers within 10 to 20 Km.
Community shopping centre
Strip location
: A cluster of stores serving people within 5 to 10 minutes drive from-the location
A huge shopping area with multiple national anchors at a convenient location and a supper market
Power centre
An open air cluster of specialty retail stores along with theatres, restaurants, play areas and green space
.
Lifestyle centre
Retail Communication
the way the stores is defined in consumer’s mind
Retail Communication partly depends on (3)
functional and psychological attributes
how to max. the sales and profits in the category
Category management :
selecting all products that customers in a market segment consider as substitutes for each other
What are the two dimensions of the retail positioning matrix?
1) breadth of product line and (2) value added.
How does original markup differ from maintained markup
Original markup is the difference between retailer cost and initial selling price. Maintained markup is the difference between the final selling price and retailer cost; also called gross margin.
The Wheel of Retailing describes _______
how new retail forms entre the market as low-status, low-margin stores and gradually add enhancements and raise their prices and status. They eventually face new low-margin, low-status stores and the wheel of retailing goes on
Over time______are added, and margin and/or status ___. This leaves open a position for ______to enter the market
new services and products
rises
a new low-price, low-margin, low-status retailer
7 CHALLENGES CANADIAN RETAILERS FACE AS THEY PURSUE SUSTAINABLE GROWTH
- The Use of Integrated Multichannel Retailing
- Embracing Technology and Using it Wisely
- . Better Understanding of Complex Canadian Shoppers
- Demonstrating Corporate Social Responsibility and Going Green
- Providing a Satisfying Customer Experience
- Improving the Bottom-line and Managing External Risk
- Effective and Fair Use of Human Capitak
Market share is usually fought out before the ________ stage of the retail life cycle.
maturity
three types of franchises and one example for each
- business format — tims
- product distribution — coca cola, Ford
- management
