Chapter 2 Flashcards
3 segments on retail sector
- Food products
- Consumer goods
- Durable consumer goods
Finished products that satisfy their personal or household needs and wants
Consumer goods
Also known as consumer durables, designed to last for an extended period
Durable consumer goods
RT distribution of food and related products to consumers through various activities
Food products
Set of retailing activities focused on selling products that can be continually utilized
Consumer goods
RT activities that offer consumers durable goods such as household products that last longer
Durable consumer goods
Retailers can operate both retail and ___________ ___________
Institutional markets
(E.g. Schools, hospitals)
How long does durable goods last
Usually 3 years
Classification of retail stores
- Fixed location
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5.
Refers to a traditional store where customers can buy products.
Located in main street or malls
Fixed location
______________________ Business operates from a specific, stationery physical store like a brick and mortar shop or a mall store rathe than mobile or online only operation
Fixed location retail
Large stores offering a WIDE VARIETY of products, including groceries, clothing and electronics
Offer both Food and non food items
Hypermarkets
Example of hyper markets
Puregold, sm hypermarket, super 8
A self-service shop offering a wide variety of food, beverages, and house hold items, organized into sections
Super market
The focus on food and other household items
Usually smaller and more convenient
Super market
Type of retail store that focuses on food items, off brand products at LOWER PRICES compared to super markets
DISCOUNT STORES
Refers to the good or products that a company buys and sells
Merchandise
Encompasses sales generated by unregistered or unlicensed retailers, street hawkers or open market stalls
Informal retailers
They are often called pop ups
Common and allowing businesses to test ideas, reach new audiences or offer exclusive experiences in a limited time and location, such as malls, markets or event venues
TEMPORARY SHOPS
Store that is not physically present, and the service is entirely automated
Vending machines
A small retail establishment that sells basic but limited selection of everyday items like snacks, drinks, groceries and are often stay LONG HOURS FOR CUSTOMER CONVENIENCE
Convenience store
Focuses on selling product or a narrow line of products offering a deep assortment within the category
Speciality store
e.g. florist, sporting goods store, or bookstore
Focuses on both perishable and non perishable foods supplies and non -edible household items
Grocery store
Also known as a dollar store
Sells wide array of goods including groceries, but also APPAREL, TOYS, HOUSEHOLD GOODS AT DISCOUNTED PRICES
Variety store
_____ and ____ are smaller version of Hypermarket and supermarket
Variety and grocery stores
Small, family owned convenience store that sells everyday items on the Philippines
Sari-Sari store
Sells goods or services to the public WITHOUT A PERMANENT STRUCTURE
Also known as Peddlers
Street vendors
Refers to the foods or other items sold by a grocer or in a grocery store
Groceries
______ are like grocery stores of other countries
SSS
Retail shop dealing with fashionable clothing or accessories
stand alone formats or renting spaces
Boutique
Specializes in preparation, and sale of medications and related healthcare products
Pharmacy
The total money spent on final goods and services by individuals and households for personal use & enjoyment in an economy
Consumer spending
Multichannel retailing includes
Physical store
Mobile
Website
Businesses must effectively analyze consumer data. _______ is crucial for understanding customer and offering the right products.
Market intelligence
By closely monitoring data, ________________________________ can adapt marketing strategies and provide a personalized customer experience.
buying and selling habits
To succeed in the digital age, Businesses must learn to check and understand _____________
CONSUMER BEHAVIORS
Growing in popularity converting regular to loyal customers
As they boost sales by increasing retention, driving repeat business, and encouraging higher spending.
They also help with word-of-mouth marketing and attracting new customers
Loyalty program
Remains a key retail trend post-COVID, offering convenience and a wide range of options for consumers
Online shopping
ONLINE SHOPPING also provides retail workers with __________, boosting productivity and profit margins
flexibility
Through online shopping, Retailers can track _____________ to tailor marketing strategies, improve customer satisfaction, and increase conversions.
consumer behavior
What does online strategy help with stores?
Gain competitive edge and also reach international customers
Consumers are increasingly aware of the environmental and social impact of their purchases, pushing brands for transparency and retailers to adopt sustainable practices
Sustainability
Consumers are increasingly aware of the environmental and social impacts of their purchases,leading to a growing demand for sustainable products and practices, and a
willingness to pay more for them
form of advertising that allows brands to promote their products directly within a retailer’s owned (on-site) properties and paid (off-site) media, using customer data to connect with consumers at the point of purchase or choice
Retail media
emerging as a new digital advertising channel, with giants like Amazon and Walmart exploring its potential to boost revenue, reach new audiences, and diversify income streams.
Retail media
refers tothe channels or tools used to transmit information,(print, broadcast, internet
MEDIA
Protecting consumers’ data and privacy has become a top priority due to increasing cyberattacks, particularly in the retail sector.
There are also growing concerns about the collection and utilization of consumer data by social media platforms and websites.
7) Emphasis on Consumer Privacy and Data Protection
To apply and protect consumer privacy, _________________, collect only necessary data, implement robust security measures, and ensure data is handled transparently and ethically. Ex: providing access codes for security
retail businesses shouldestablish clear privacy policies
In the future, it is expected that hybrid shopping channels, which combine physical and digital experiences, will become more prevalent.
75% of consumers in the United States currently engage in omnichannel activities, such as researching products and making purchases both online and in physical stores.
Hybrid shopping
Retailers must incorporate new payment channels, such as layaway plans or buy now, pay later plans, in addition to credit cards to meet consumers’ expectations.
Payment flexibility
The increase in social commerce can be attributed to TikTok, and Gen Z users play a significant role in driving this growth.
It is predicted that in the future, there will be an additional 10 million social buyers on platforms.
10) TikTok and Gen Z Will Significantly Impact Social Commerce
Personalization involves tailoring services, products, or experiences to meet the specific needs, preferences, and behaviors of individual customers or users.
This can lead to greater influence over customers’ purchasing decisions, higher levels of engagement, increased customer loyalty, boosted sales, and ultimately more revenue.
Personalization is still king
Delivers personalized offers and recommendations based on purchase history through its app, and remembers customers’ favorite drinks and preferences.
Starbucks
Suggests films and TV shows based on viewing history and even personalizes the film covers to highlight actors or actresses the user is familiar with.
Netflix
Creates personalized playlists (like “Discover Weekly”) and recommends podcasts based on listening history.
Spotify
To improve customer experiences, businesses should offer 24/7 support.
Exceptional customer service alone is no longer sufficient as customers expect to be able to reach out to businesses at any time and from any location.
Round the clock customer support
Two global brands who are exploring and identifying ways to reshape the retail industry’s future through the metaverse.
Nike and Gucci
In the retail industry, the metaverse refers to the integration of virtual reality (VR), augmented reality (AR), and other immersive technologies to create virtual stores, allow customers to explore products virtually, and offer interactive shopping experiences.
The metaverse is expected to have an impact on the future of the retail industry. About 110 million people are predicted to use AR every month.
Growing popularity of the metaverse
With the rise of automation, there is an increasing demand for businesses to upskill workforce.
This means providing them with dynamic learning opportunities that can equip them with the necessary skills for their job. This, in turn, will enable the workforce to stay agile and up-to-date on the latest technology, tools, and processes in the retail industry.
Empowering the work force
Empowering the workforce meansgranting employees the authority, resources, and support to make decisions and take ownership of their work,_________,________-,____________
leading to increased engagement, productivity, and innovation.
involvesproviding clear and open information about shipping processes, including costs, delivery timeframes, and tracking details
Shipping transparency
involves businesses selling goods and services to consumers via the internet, a digital form of retail that complements or replaces traditional brick-and-mortar stores.
E-commerce retail or online shopping
is vital for its cost-effectiveness and convenience, allowing customers to compare prices easily.
E-commerce
essential for stores the same as a physical storefront.
Websites
An online business model that uses a smartphone app to sell products directly, bypassing the need for a website.
While similar to e-commerce, retailers usually combine mobile with other sales channels. Many now merge in-store and online options for customer convenience.
Mobile retail
