Chp 15 Retailing
Franchising
An arrangement in which a supplier (franchiser) grants a dealer (franchisee) the right to sell products in exchange for some type of consideration Ex: McDonalds, 7-11, subway
Which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their ice boxes?
Convenience stores
Specialty Retailers
In contrast to general-merchandise retailers with their broad product mixes, specialty retailers emphasize narrow and deep assortments 1. Traditional specialty retailers Ex: Radio Shack, foot locker 2. category killers Ex: Home depot, office max 3. off-price retailers
department stores
Large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management
Strategic issues
Location Store Image Category management
Which retail store invests the most in atmospherics?
Neiman Marcus
discount stores
Self-service, general-merchandise stores that offer brand-name and private-brand products at low prices
Service Retailing
Sells services rather than products -Important differences from products --Intangibility --Inseparable --Perishability --Inconsistency of offerings do to labor issues
direct marketing
The use of the telephone, Internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the Internet
Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?
Warehouse club
A general-merchandise retailer offers
a variety of product lines that are stocked in depth.
Retailing
all transactions in which the buyer intends to consume the product through personal, family, or household use
Retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers -bulk breaking responsibility -retailers are important to the economy
Benefits to Bricks and Mortar Retailers
browsing, touching and feeling, personal service, cash and credit, entertainment and social interaction, instant gratification, risk reduction
Michael's, PetSmart, and Staples are all examples of
category killers.
Benefits to Internet Retailers
deeper and broader selection, personalization, gain insights into consumer shopping behavior, increase customer satisfaction and loyalty, expand market presence
If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)
department store.
Malcolm Lewis has come up with the idea of a system for picking up people's cars while they are at work, washing and waxing them, and returning them for a fee. Having been a big success in his home city, Malcolm plans to expand his operation into other cities. The service described here seems best suited to
franchising.
Types of Retail Stores
general merchandise retailers food retail service retail
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location.
Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers.
Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)
retailer.