Retailing Flashcards
independent retailers
retailers owned by a single person or partnership and not operated as a part of a larger retail institution
local florists, shoe repair, ethnic food markets
chain stores
owned and operated as a group by a single organization
Gap or Starbucks
franchises
owned and operated by individuals but licensed by a larger supporting organization
Krispy Kreme, McDonald’s, Dunkin Donuts
retailing
the process by which goods and services are sold to customers for their personal use
value is added or subtracted from the offering with image, inventory, service quality, location, and pricing policy
Retailers belong to a _____, providing time, place, and ownership utility of customers
channel of distribution
Retail stores can be classified by
level of service, what they sell, and merchandise selection
Difficulties in retailing
shoplifting, employee theft, retail borrowing
Issues in customer dealings
discouraging certain types of customers from shopping
selling harmful products to at risk groups
self-service retailers
shoppers make selections without any help
Factory Outlets
limited-service retailers
may offer credit service and merchandise return services but little else
the majority of shopper selection is done without assistance
Target
full-service retailers
offer supporting services such as gift wrapping, trained sales associates assist buyers\
Exclusive clothing stores offer: credit, alterations, delivery, consulting, liberal return policies, gift-wrapping, personal shopping
merchandise mix
total set of products offered for sale by a retailer, including all product lines sold to all consumer groups
like food stores
merchandise breadth
number of different product lines
merchandise depth
choices available in each product line
An airport bookstore has _____ breadth and ____ depth
for just the LOTR books
narrow, shallow
Sam’s Club has _____ breadth and ____ depth
Selling LOTR, a few books and limited assortment of tshirts and toys
broad, shallow
www.legendaryheroes.com only sells on the internet and only sells merchandise for specific series/books/movies like Hercules, LOTR, Conan, The Highlander, etc.
______ breadth and ______ depth
narrow, deep
Amazon sells millions of books and a long list of other product lines including electronics, toys, apparel, motorcycles, etc.
____breadth and ____ depth
broad, deep
non-store retailing
any method used to make an exchange with a product end user that does not require a customer visit to a store
direct selling
an interactive sales process in which a salesperson presents a product to one individual or a small group, takes orders and delivers merchandise
Forms of direct selling
door to door sales
party plan system (like Mary Kay)
automatic vending
convenience stores
have little depth and little depth, carry necessities but usually have few versions to choose from and low service
supermarkets
have some breadth and some depth, low to medium service
specialty stores
have limited breadth but significant depth, concentrated product assortment and carry one or few product lines but at a considerable depth, high service
discount stores
general discount stores, warehouse clubs, factory outlet stores
department stores
have some breadth and some depth, medium to high service
hypermarkets
combine warehouse and supermarket characteristics
less popular in the US
Carrefours?
store image
the way a retailer is perceived in the marketplace relative to the competition
atmospherics
the use of color, lighting, scents, furnishings, sounds and other design elements to create a desired store image
Music in a store can
control the pace of store traffic, create an image, and attract or direct consumers’ attention
Lighting can
highlight merchandise, structure space and capture a mood, energy efficient lighting, downplay features
Scent
neutral scents produce more favorable perceptions of the store than no scent, and customers in scented stores report feeling as if they spent less time shopping than customers in unscented stores
Color
warm colors produce emotional, vibrant, hot, and active responses
cool colors have a peaceful, calming effect
colors are culturally bounded
store layout
arrangement of merchandise in the store that determines traffic flow
grid layout
easy to locate merch
does not encourage customers to explore store
allows more merch to be displayed
cost efficient
used in grocery, discount, and drugstores
free form layout
fixtures and aisles arranged asymmetrically
provides an intimate, relaxing environment that facilitates shopping and browsing
pleasant relaxing ambiance
inefficient use of space
susceptible to shoplifting
used in specialty stores and upscale department stores
racetrack layout
loop with a major aisle that has access to departments
draws customers around the store
provide different viewing angles and encourage exploration
used in department stores like JC Penney
Store personnel should complement a store’s image through
dress, attitude, and knowledge
price points
price ranges of a store’s merchandise
can play a role in establishing store image
Site selection takes into effect ____ or ____, which accounts for a majority of its sales and customers
the store’s trade area or geographic zone
Types of stores
department store, specialty store, supermarket, convenience store, drugstore, full-line discounter, specialty discounter, warehouse clubs, restaurant
Vary depending on the degree to which they provide service to you. Specialty store has high level of service on one particular product category (e.g., electronics) down to warehouse club which sells a variety of product categories with very little service/sales support in-store.
