chapter 9 (unit 2) Flashcards
QUIZ: which of the following is not an industry term that describes the variations of products offered?
* product width
* product depth
* product reach
* product assortment
product reach
QUIZ: what are all the details inside the retail store’s physical environment that influence consumer behavior?
* visual merchandising
* retail atmospherics
* store layout
* visual atmospherics
retail atmospherics
QUIZ: true or false - different store layouts cannot be combined or used together
true or false
false
QUIZ: which of the following was not included in types of retail stores discussed in this chapter?
* big-box store
* supermarket
* department store
* all of these were included in the chapter as types of retail stores
all of these
QUIZ: what DOES still draw consumers to a physical store?
* experience
* persuasion
* public relations
* square footage
experience
QUIZ: what is also called the merchandise mix?
* product depth
* product assortment
* product width
* product line
product assortment
QUIZ: what represents the range of choice offered to the consumer within a particular classification of merchandise?
* product line
* product depth
* product assortment
* product width
product assortment
QUIZ: what type of retail store is divided up into departments of similar types of product lines?
* big-box stores
* supermarkets
* speciality stores
* department stores
department stores
QUIZ: types of retail stores are often distinguished by their __
* product assortment
* store size
* neither product assortment or store size
* both product assortment and store size
both product assortment and store size
QUIZ: what is it called when retailers make different purchasing options available to customers?
* multi-purchase
* omni-channel
* purchase options
* none
omni-channel
brick and mortar stores
physical storefronts
retail and retail locations
Is the sale of goods or services to a final consumers (as opposed to the sale of goods to another business)
Department stores
Restaurants
Gas stations
Car dealerships
key pieces of retail
Retail is made up of three pieces that all fit together
We’ll be focusing on physical storefronts and a retailers products or merchandise in this chapter
product line
A product line is a group of related products marketed and sold by the same company under the same brand.
product width
Product width (also called product breadth) is the number or variety of product lines that a store offers.
product depth
Product depth is the number of individual products in a product line. It represents all of the variations of products in a product line, including each color, flavor, or size of product.
product assortment
Product assortment, also called merchandise mix, represents the range of choice offered to the consumer within a particular classification of merchandise. It is the combination of the product width and product depth that a store carries.
remember that this is also called merchandise mix
apple store product assortment
merchandise mix
front left to right is the product lines (tv, watches, phones computers)
then below that is the product types (apple tv, apple watch, iphone, macbooks)
then bwlo that is the product (4k 32 gb, series 7, iphone 14, macbook pro)
(types of retail stores) convenience stores
Small stores often located in or near residential areas
Product lines are often limited, with the store having wide product width but not depth
Prices on goods are often higher than at a supermarket or department stores.
Example: Quiktrip
(types of retail stores) speciality stores
feature narrow and deep product lines (narrow product areas). These stores selectively sell goods related to a particular product area or brand.
EX: Lane Bryant (one brand, plus-size clothing), Petco
(types of retail stores) discount store
Offers product at a discount, often due to overruns (extra inventory), factory buyouts, previous-season items or product damage. Outlet stores often represent one brand or retail store and offer discounted items directly from that company or factory. Stores are occasionally grouped together in outlet malls.
EX: Nordstrom Rack, TJ Maxx
(types of retail store) department stores
A department store offers a wide assortment of product lines (wide product breadth) and is divided into departments of similar types of product lines. These departments often have separate managers, registers, product buyers, and promotions.
EX: Dillard’s, Macy’s
(types of retail stores) supermarkets
A supermarket is a medium to large grocery store offering a large selection of grocery items, sometimes at discounted prices. Supermarkets often sell basic household items as well.
Example: Kroger, Aldi
(types of retail stores) big-box stores aka supercenters
According to Wikipedia, big-box store is a large retail store and is often part of a chain. In the United States, these tend to range from 50,000 to 200,000 square feet and carry large amounts of merchandise. The two subtypes of big-box stores are general merchandise (such as Target and Walmart) and specialty stores (such as Lowe’s), which offer more specific product assortments.
Example: Target, Lowe’s
shifting consumer behavior
Rise in online sales
Mobile shopping increase
Decrease in mall shopping
Decrease in sales in department stores and other vulnerable stores
Increase in experience purchases post covid
online resistant
Note that some types of retail stores are considered “online resistant,” meaning they are not affected as much by the increase in online shopping.
The types of stores that are the least resistant to online sales substitutes, and therefore most at risk for decreased sales, include department stores, bookstores, toy stores, electronic stores, and music stores.
how to adapt to shifting consumer behavior
Marketing retail in experience
What draws customers to a physical store?
- An experience
- Customers are looking for something in the store that would be a value added above shopping online
retail atmospherics
A store differentiates itself through its retail atmospherics, which includes all of the details inside the retail store’s physical environment that influences customer behavior.
It is used to not just differentiate a store environment but also to reinforce branding, to increase traffic, and to increase customer spending.
visual merchandising
The practice in the retail industry of developing floor plans and three-dimensional displays in order to maximize sales
Closely related to retail atmospherics is visual merchandising, the practice in the retail industry of developing floor plans and three-dimensional displays in order to maximize sales. Many companies have positions available specifically for visual merchandising, and some stores even employ visual merchandisers for each individual location.
how to adapt to shifting consumer behavior (explained in greater detail)
- making retail an experience
- adding an experience
- curating a product assortment (and going local)
- offering online options (going omni-channel)
- adding augmented reality and other technology
omni-channel
when retailers make purchasing options available to consumers; the goal is to essentially be everywhere
store layout
is the design of a store’s floor space and fixtures to facilitate the flow of traffic and shopping. There are several common types of store layouts, and they each work well in different store, merchandise, and purchasing situations.
(types of store layout) grid layout
- is common in supermarkets and big-box stores. It features long, parallel aisles that are perpendicular to the walls.
- Some grid layouts have shelving so tall that customers cannot see to the next aisle. This layout works well for displaying and organizing high volumes of merchandise
- The predictability of this layout can be both an upside and a downside. Most customers are familiar with the layout and are comfortable strolling up and down the aisles BUT the layout may not lend itself to the creative retail “experience” that some stores hope to create.
- This layout can also be a downside if the products are not organized well or if there is not proper signage; in such cases, customers would have to walk up and down all of the aisles to find products
(types of store layout) diagonal layout
- The diagonal layout is very similar to the grid layout except that the aisles are set diagonally to the store walls instead of perpendicularly.
- While the pluses and minuses are similar to the grid layout, the diagonal layout also has the upside of the store employees being able to easily view the merchandise.
- The height and placement of fixtures allows both customers to easily see all the merchandise and employees to see customers shopping in the store.
- You can see how this grocery store uses diagonal shelving for their refrigerated section. This part of the store organizes items such as fresh produce while still maintaining an open feel.
(types of store layout) racetrack (loop) layout
- it takes customers on a loop around the store. There is a clearly defined aisle and flow of traffic. This does take customers on a predictable journey through the store, and customers can see a majority of the merchandise.
- this may not be well suited in situations of high traffic, where the main racetrack loop through the store would get overcrowded.
- racetrack layout where customers must follow a required path, customers may not appreciate being forced through the entire store when they only wish to get one desired item.
EX: ikea
(types of store layout) spine layout
- The spine layout features one main aisle from the entry to the back of the store, with sections of merchandise branching out from that main aisle.
- This layout is common in department stores.
- This layout gives a clear path through the store but may not encourage customers to explore all of the merchandise.
(types of store layout) free-flow layout
- The free-flow layout doesn’t have a clearly defined path through the store, therefore allowing a free flow of traffic around the merchandise.
- encourages customers to wander about the store at their own pace. Although this layout may not be ideal for efficient display of large volumes of merchandise, it can work well for stores wishing to create a retail store experience.
- This type of layout works well for small to medium stores and stores that sell higher-end merchandise (as they can display a lower volume of merchandise on the floor). Too much merchandise on the floor or too many displays with this layout can feel crowded to the customer.
- good for : boutiques and high-end clothing stores often use this layout as these store types display smaller amounts of merchandise
- not good for : big-box stores. The space would likely be crowded, overwhelming, and confusing to customers.
(types of store layout) combination layout
- It’s important to note that many stores implement a combination of these common layouts.
- For instance, the free-flow layout is also commonly used in conjunction with other layouts, such as the spine layout.
- A store might have an overall spine layout but free-flow layout in the areas branching off from the spine walkway.
layout interaction psychology
Be aware of how people move throughout the store (people turn right)
Consider the flow of traffic for signage
Add a “decompression” zone at the front of the store
Create sufficient aisle and shopping space
Create speed bumps for customers to slow down
Place impulse items near the checkout
other atmospheric elements
Lighting
Sounds
Smells
Colors - The brand’s colors should be used in the store to reinforce the brand recognition and identity.
Signage
other atmospheric elements - signage
Find a color palette and stick with it.
Use a big enough font so no one has to squint to read it.
Keep the word count short.
Limit your use of the word No. For example, instead of saying, “No Refunds after 14 days,” say, “Refunds available within 14 days.”
Use analogies. For example, declare_,_ “Like A Shot of Espresso For Your Skin!”
Test signage for clarity by using your desktop printer before committing to having them professionally printed.
resources for creating the space for your store
- deciding on fixtures
Different types of merchandise displays are able to store different amounts of products and are good for different uses.
high shelving, round tables, square table - drawing the layout
- the planogram (important)
A planogram is a guide for displaying retail products on shelves and throughout the store. A marketer can use a planogram to help maximize space, to display items in a similar way throughout a chain of stores, and to guide employees on how to display merchandise.
