Chapter 16/17: Retailing Flashcards
Retailing
All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use
Retailers
Distribution Channel
Both customers and marketers
Form of Ownership
Distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet
Independent Retailer
- Most common
- Owned by an individual
- Owner is the boss
Corporate Chain
Multiple outlets under common ownership
Contractual Systems
Independently owned stores that band together to act like a chain
Franchise System
An individual or firm (the franchisee) contracts with a parent company (the franchisor) to set up a business or retail outlet
Level of Service
The degree of service provided to the customer from three types of retailers: self-, limited-, and full-service
Self-Service
- Customer performs many functions during purchase process
- Trend is making customer co-creators
Limited Service
- Some services like credit and merchandise return, but not others like alterations.
- Salespeople available for some assistance
Full Service
Customer service is at the heart
Merchandise Line
How many different types of products a store carries and in what assortment
Specialty Outlets
- Category Killers
- Limited or Single line stores
- Carries a large assortment of each item
General Merchandise Store
- Carry broad product line, with limited depth
- Department stores
Scrambled Merchandising
Offering several unrelated product lines in a single store
Supercenters
Combining general merchandise and grocery
Breadth of Product Line
How many product lines are offered
Depth of Product Line
How many different items in a product line sold, number of options
Direct Selling
Manufacturers sell directly to consumers at their home or office
Telemarketing
Using the phone to sell directly to consumers
Internet/Online Retailing
Virtual Storefronts
Brick-and-Mortar –> Web
Direct Mail
Postcards, letters, catalogs
Automatic Vending
V-Commerce: vending machines to offer a wider variety of goods
Retailing Mix
- Retail Pricing
- Store Location
- Retail Communication
- Merchandise
Markup
Amount a retailer adds to the cost of a product to determine its selling price
Markdown
Amount by which a retailer reduces the original selling price of a product
EDLP
Emphasizes consistently low prices and eliminates most markdowns
Shrinkage
Aka breakage, theft and fraud by customers and employees; increases prices
Off-Price Retailing
Consists of selling brand- name merchandise at lower than regular prices
Examples of off-price retailers
Warehouse Club
Outlet Store
Single/Extreme Value Store
Store Atmospherics
Combination of physical characteristics and amenities that contribute to a store’s image
Shopper Marketing
The use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store
Category Management
An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category
Assortment Paradox
Pre-choice: Large assortment
During choice: Small assortment
Customer Service
Attract and retain target customers to increase sales and profits
How does digital technology promote and sustain customer relationships?
Interactivity and Individuality
Interactive Marketing
The two-way buyer-seller electronic communication in a computer- mediated environment in which the buyer controls the kind and amount of information received from the seller
Choiceboard
Interactive, Internet-enabled system that allows individual customers to design their own products and services by answering a few questions and choosing from a menu of product or service attributes (or components), prices, and delivery options
Collaborative Filtering
A process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases
Personalization
Generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences
Permission Marketing
The solicitation of a consumer’s consent to receive email and advertising based on personal data supplied by the consumer
Why do consumers shop and buy online?
Convenience, Cost, Customization, Communication, Cost, Control
Bots
Electronic shopping agents or robots that comb websites to compare prices and product or service features
8-second Rule
Customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds
Customization
Not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer.
Web Communities
Websites that allow people to congregate online and exchange views on topics of common interest
Spam
Communications that take the form of electronic junk mail or unsolicited e-mail.
Spam
Communications that take the form of electronic junk mail or unsolicited e-mail.
Viral Marketing
Internet enabled promotional strategy that encourages individuals to forward marketer-initiated messages to others via e-mail, social networking websites, and blogs
Cookies
Computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website
Behavioral Targeting
Uses info provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising
