Managing Traditional Goods and Services Flashcards
T/F?
Almost ALL retail stores are designed to sell merchandise.
True
Which part of the pharmacy is CRITICAL to TOTAL FINANCIAL SUCCESS?
Front-end (from the rx department to the front door of the store)
When looking the “FRONT END” of a pharmacy what should be considered? (2)
- Design, layout, and merchandise
- Convenience, price and service (wants and needs)
Multiple Facing
When you have two or more types of products located side by side.
i.e. all sugar free products placed or laid out side by side
Merchandising Time Line: Early 1900s (2)
- Low RX volume
- Cosmetics, magazines, tobacco, stationary, candy
Merchandising Time Line:
1920s (4)
- Prohibition occurred and ALCOHOL was no longer able to be sold
- Soda fountains- (cocktails)
- Rx volumes increased with EtOH prescriptions
- Mass production of manufactured pharmaceuticals
Merchandising Time Line: Post WWII (2)
- Increased RX volume with a focus on delivering the drug product
- RX’s were just another commodity to sell
Merchandising Time Line: Late 1960s (1970s and 1980s)
Focused on professional deliver of the drug product service
What are the 3 primary reasons that a consumer will make a purchase?
- Emergencies (run out of something)
- Buying interests spurred on by a “good price or a new product”
- Impulse purchases (buying on a whim)
T/F?
Most purchases are PLANNED.
False
UNPlanned
When customers want pharmacies that are CONVENIENT, WELL ORGANIZED, and WELL-STOCKED it is considered the _______ of the pharmacy.
Design (macro)
the pharmacy as a whole
Design must adhere to what applicable legal requirements? (2)
- HIPAA (1996)
- American with Disabilities Act
When considering the DESIGN of a pharmacy, what other considerations should be considered? (3)
- Exterior design
- Traffic patterns (exterior design)
- Entrances and exits (exterior design)
________ sends cues, messages and suggestions that communicates to shoppers.
Layout (micro design INSIDE the pharmacy)
What is the goal of the layout of a pharmacy?
To maximize time spent BROWSING and MINIMIZE the risk of THEFT
When making a layout what 2 things should be considered to MAXIMIZE BROWSING?
- The ARRANGEMENT of fixtures should facilitate movement
- Capitalize on the RX department and RPh
What are the 2 types of layouts
- Grid layout
- Free flow layout
Layouts with VERTICAL straight rows
with products placed along the isle describes what type of layout?
Grid layout (everything is displayed along the shelves in a linear fashion)
What type of layouts has round tables and odd shaped fixtures for displaying products?
Free-flow layouts
T/F?
Locked cabinets and keeping some products behind the counter help to MINIMIZE the risk of theft.
True
T/F?
FREE-FLOW is the most common layout used in pharmacy.
False
- Grid layout
_______ is the proper placement of goods on the shelf.
Merchandising
What creates “flow” by placing related departments NEXT to or NEAR one another?
Merchandising
What 6 things should be considered when MERCHANDISING?
- Cross aisles
- End caps
- Plan-o-grams
- Facing
- Eye-level
- Scanning left to right, top to bottom
When is it appropriate to use a cross aisles
If the length of an aisle is 50 ft or more.
T/F?
Studies have shown that if you have an aisle that is 50 ft. or greater without a cross aisle, sales will DECREASE.
True
______ is a picture that displays how merchandise should be arranged on the shelf that is provided by the manufacturer.
Plan-o-gram
Where do patients “look” for merchandise when shopping?
Eye-level then left to right, and top to bottom
T/F?
Items that you want patient to purchase should be placed at eye-level on the top-left.
True
Where should products that are least likely to be sold placed?
bottom-right
Fixtures are ______?
Assets
Consumers view the _____ _______ as a professional area and it should be CLEAN and WELL ORGANIZED.
RX Department
T/F?
The RX department should be designed with pharmacists-patient relationship in mind.
True
When designing the Rx Department with the pharmacist-patient relationship in mind what 4 things should be considered?
- RX drop off and pick-up
- Patient waiting
- Highlight products that commonly require pharmacist advice for proper use
- Drive-thru windows (in compliant w/ GA regulations)