Retail Management Exam Notes

World of sell Retailing the tick of business activities that adds value to the products and service sold to consumers for their ad hominem use or family use * Retailer a business that sells products and/or run to consumers for their personal or family use * Supply range set of tightens that make and waive goods and services to consumers * Wholesalers engage in buying, taking title to, often storing, and physically handling goods in rotund quantities and thus reselling the goods to sellers and an early(a)(prenominal) businesses * Vertical integrating that a form performs more than one set of activities in the channel, as occurs when a retailer engages in wholesaling activities by operating its own dissemination centers to supply its stores *Backward Integration when a retailer performs some wholesaling and manufacturing activities, much(prenominal) as operating w atomic number 18houses or designing private-label intersection Why are retailers needed? 1. Provide an conco ction of products and services 2. Breaking bulk 3. dimension inventory 4. Providing services Corporate Social Responsibility (CSR) an organization voluntarily taking responsibility for the impact of its activities on its employees, guests, community and the environment * Intratype contention competition amidst same type of retailers * Intertype Competition competition between retailers that sell similar sell using different types of stores, such as discount and department stores *Scrambled Merchandising When retailers affirm production non typically associated with their type of store * Retail Strategy how the retailer plans to revolve about its resources to extend to its objectives 1. Target market, or markets, toward which the retailer will direct its efforts 2. The disposition of the production and services the retailer will purpose to satisfy the involve of the target market 3. How will the retailer will build a long-term advantage over its competitors * Ethics prin ciples governing individuals and companies that establish captivate behavior and indicate what is right or wrong Ch. 2 Types of Retailers cast number of production bur differ in the variety and assortment of swopd offered- Breadth of Merchandise * florilegium number of different items offered in a swop socio-economic class- Depth of Merchandise* Stock-Keeping Unit(SKU) each different item of merchandise * Conventional Supermarket large self-service retail food store go groceries, meat, and produce, as wells as nonfood items, such as health and dish antenna aids and widely distributed merchandise- stock about 30000 SKUs * Limited Assortment Supermarkets or Extreme-Value Food Retailers stock about 200 SKUs * advocator Perimeter fresh-merchandise along the outer walls of a supermarket, that include dairy, meat, floral, produce, deli and chocolate bar * Fresh Supermarkets shrimpyer and more convenient than a traditional supermarket and have less space devoted to packaged go ods * Fair disdain practice of purchasing from factories that pay workers a living wage, and offer different benefits like onsite medical treatment * Locavore Movement focuses on reducing carbon footprint caused by transportation of food throughout the world * Supercenters large 185000 sq ft that combine a supermarket with a full-line discount store Ex.Wal-Mart * Hypermarkets lakh to 300000 sq ft combine food (60 to 70%) and general merchandise (30 to 40%) * Warehouse Clubs retailers that offer limited and irregular assortment of food and general merchandise with little service at low prices for ultimate consumers and small businesses * dodge Stores provide a limited variety and assortment of merchandise at a convenient location in 3000 to 5000 sq ft stores with lively checkout * Department Stores retailers that carry a broad variety and turbid assortment, offer customer services, and organize their stores into distinct departments for displaying merchandise * Full-Line Disco unt Stores retailers that offer a broad variety of merchandise, limited service and low prices Ex.Wal-Mart, Target, Kmart * medium Stores concentrate on a limited number of complimentary merchandise categories and provide a high level of service Ex. Victoria whodunit * Drugstores concentrate on health and personal grooming merchandise * form Specialists big-box stores that offer a barrow but deep assortment of merchandise Ex. Bass Pro Shops * Category Killers offering complete assortment, using their category dominance and buying power * Extreme- Value Retailers small discount stores that offer a limited merchandise assortment at low prices Ex. one dollar bill Tree * Off-Price Retailers or Closeout Retailers offer an inconsistent assortment of brand address merchandise at a significant discount off the manufacturers suggested retail price(MSRP) Ex. T. J.Maxx * Closeouts end-of- placate merchandise that will not come back the following season * Irregulars merchandise that has mi nor mistakes in construction * Outlet Stores off-price retailers owned by manufacturers or retailers * Factory Outlets own by manufacturers Ex. Coach * Retail Chain company that operates multiple retail units under common ownership and commonly has centralized decision making for defining and implementing its strategy * Franchising contractual discernment between a franchisor and a franchisee that allow the franchisee to operate a retail outlet using a name and format developed and support by the franchisor Ch. 3 Multichannel Retailing Multichannel Retailers retailers that sell merchandise or services through more than one channel * Retail line of work the guidance a retailer sells and delivers merchandise and services to its customers* Internet Retailing, Online Retailing, electronic Retailing or E-Tailing a retail channel in which the offering of products and services for sale is communicated to customers over the internet * Catalog Channel a nonstore retail channel in which the retail offering is communicated to customers through a catalogue mailed to customers * Direct Selling a retail channel in which salespeople interact with customers face-to-face in a convenient location, either at the customers home or at work * multilevel System independent businesspeople serve as master distributors, recruiting former(a) people to become distributors in their network * Pyramid Scheme develops when the firm and its program are designed to sell merchandise and services to other distributors rather than to end users * Television Home Shopping a retail channel in which customers watch a television program demonstrates merchandise and then place enunciates for that merchandise, usually by telephone, via the internet, or via the TV external* Infomercials 30 to 60 routines that mix entertainment with product demonstrations and then solicits orders placed by telephone * Direct-Response Advertising 1 to 2 minute advertisements on TV and radio that describe products and provide an opportunity for consumers to order them * Automated Retailing a retail channel in which merchandise or services are stores in a machine and dole out to customers when they deposit cash or use a credit dining table * Vending Machines automated retailing machines, placed at convenient, high-traffic locations * Benefits of Store Channel 1. Touching and Feeling Products 2. Personal Service 3. Risk reduction 4. straightaway Gratification 5. Entertainment and social interaction 6. Browsing 7. Cash stipend * Benefits of Cataloging 1. Safety 2. Convenience 3.Ease of use * Benefits of Internet Shopping 1. Safety 2. Convenience 3. Broad and deep assortments 4. Extensive and timely entropy 5. Personalization * Risks in Electronic Shopping 1. Security of credit card transactions on the internet 2. Privacy violations * Disintermediation when a manufacturer sells directly to consumers and bypassing retailers * Channel Migration consumers collecting information about products on their channel and then buying the product from a competitor Ch. 4 Customer Buying Behavior * Buying work at steps consumers go through when buying a product or services, begins when customers recognize an unsatisfied need *Utilitarian Needs shopping to accomplish a specific task * Hedonic Needs shopping for diversion entertainment, emotional and recreational experiences * Cross-Shopping buying both premium and low-priced merchandise or patronizing both expensive, status-oriented retailers and price-oriented retailers * Internal Sources information in customers memory names, images, past experiences * External Sources info provided by ads and other people * Every day-low-pricing policy assure customers that that wont uprise an item at a lower price at a different store the next time they shop for it * Multiattribute Attitude archetype based on the notion that customers see a retailer, a product, or a channel as a collection of attributes or characteristics