Retail Exam 2 Chapter 18

Prodcut motivation product groupings

A classification of store offerings: -appeal to the consumer's urge to buy products and the amount of time he or she is willing to spend on shopping. A committed customer with time to shop will visit a store's upper floors; a disinterested person with less time will look at displays on the first floor (usually including impulse products and other rather quick purchases)

Functional Product Groupings

A classification of store offerings: -Display merchandise by common end use. A men's clothing store might group shirts, ties, cuff links, and tie pins; shoes, shoe trees, and shoe polish; T-shirts, undershorts, and socks; suits; and sports jackets and slacks

Storability Product groupings

A classification of store offerings: -may be used for products needing special handling. A supermarket has freezer, refrigerator, and toom-temperature section

Market segment product groupings

A classification of store offerings: -place together various items that appeal to a given target market. A women's apparel store divides products into juniors', misses', and ladies' apparel. A music store separates CDs into rock, jazz, classical, R&B, country, and other sections.

model stock approach

A determination of space need approach -determines the floor space necessary to carry and display a proper merchandise assortment. -Apparel stores and shoe stores are among those using this method

sales-productivity ratio

A determination of space need approach -assigns floor space on the basis of sales or profit per foot. Highly profitably product categories get large chunks of space; marginally profitable categories get less. -Food stores and bookstores are among those that use this technique

Point-of-Purchase Display

Display that provides shoppers with information, adds to store atmosphere, and serves a substantial promotional role.

1. Price Led (Walmart, CVS) 2. All about Ease: ease of location and check-out (Dollar General, local grocery store) 3. All about Atmosphere (Tiffany, Abercrombie and Fitch) 4. Ideas Led (Whole Foods, Hallmark/Gold Crown) 5. Price Plus (Kohl's, Bed Bath and Beyond) 6. Efficient Errands: good place to buy items that you already planned to buy in advance (Autozone, Lowe's)

Six Major Retail Image Positions (named by Alan Treadgold)

ensemble display

Type of display. - a complete product bundle is presented- rather than showing merchandise in separate categories (shoe dept., sock dept, pants dept). -customers like the ease of purchase that this display makes

Theme-setting display

Type of display. -depicts a product offering in a thematic manner and sets a specific method. -often changes based on the season or based on special events --> employees may even dress for the occasion -All or part of the store may be changed for this type of display

case display

Type of display. -exhibits heavier, bulkier items than racks hold (DVD sets, books, pre-packaged goods, and sweaters typically appear in these case displays)

Dump bin

Type of display. -a case that holds piles of sale clothing, marked down books, and other products. -Do not create a warm atmosphere -assortment of roughly handled items -Low price image

cut case

Type of display. -an inexpensive display that leaves merchandise in the original carton. -Supermarkets and discount stores often do this -does NOT create a warm atmosphere -Low price image

rack display

Type of display. -has a primarily functional use: to neatly hang or present products -often used by apparel retailers, housewares retailers, and others. -must be carefully maintained.

Assortment display

Type of display: -exhibits a wide range of merchandise -with an "open" assortment the customer is encouraged to feel, look at, and/or try on products -closed assortment --> the customer is encouraged to look at merchandise but not touch it or try it on (computer software, CDs, and DVDs are pre-packaged itesm that cannot be opened before buying)

visual merchandising

When a retailer takes a proactive, integrated atmoshpherics approach to create a certain "look", they engage in this. This includes everything from store display windows to aisle width to the materials used for fixtures to merchandise presentation.

marquee

a sign that displays the store's name. Can be painted or a neon light, printed or script, and set alone or mized with a slogan (trademark) and other information.

planogram

a visual (graphical) representation of the space for selling, merchandise, personnel, and customers- as well as for product categories. -more and more firms are using these to assign space -lays out their in-store placement -may be hand-drawn or computer-generated

dead areas

awkward spaces where normal displays cannot be set up. Ex.) Light fixtures, wood or metal beams, doors, rest rooms, dressing rooms and vertical transportation -these areas cannot be deployed profitably or attractively -Retailers have learned how to use these spaces more wisely though (putting mirrors on exits, ads appearing in dressing rooms, vending machines in the bathroom)

straight (gridiron) traffic flow

places displays and aisles in a rectangular or gridiron pattern. -often used by food retailers, dicount stores, drugstores, hardware storesm and stationary stores. -Advantages: An efficient atmosphere is created, more floor space is devoted to product displays, people can shop quickly, inventory control and security are simplified, self-service is easy, thereby reducing labor costs -Disadvantages: the impersonal atmosphere, more limited browsing by customers, and rushed shopping behavior

curving (free-flowing) traffic flow

places displays and aisles in free-flowing pattern -often used by department stores, apparel stores, and other shopping-oriented store. -Advantages: A friendly atmosphere, shoppers do not feel rushed and will browse around, people are encouraged to walk through the store in any direction or pattern, impulse or unplanned purchases are enhanced -Disadvantages: Possible customer confusion, waster floor space, difficulties in inventory control, high labor intensity, and potentional loitering, and displays often cost more

experiential merchandising

the aim of this is to convert shopping from a passive activity into a more interactive one, by better engaging customers -American Girl Stores -Urban Outfitters -Williams-Sonoma

storefront

the total physical exterior of the store itself. Includes the marquee, entrances, windows, lighting, and contruction materials. -this presents the image of the store -Some options in creating this: Modular structure, prefabricated structure, prototype store, recessed storefront, unique building design

social media

this encompasses online technology tools that allow vast numbers of people to easily communicate with one another via the Internet and mobile devices.

Solutions selling

this tactic takes a customer-centered approach and presents "solutions" rather than "products" -Ex.) At holidays, some stores will group products by price "$25", "$50", "$75" --> this helps the buyer have a solution when they have a budget but aren't exactly sure what to buy