CADS 5850 FINAL

Presentation Techniques

- Idea oriented presentation - item and size presentation - color presentation - price lining - vertical merchandising - tonnage merchandising

racetrack layout

- also called LOOP LAYOUT - major aisle guides traffic through different departments - encourages unplanned purchasing

free form layout

- also called boutique layout -fixtures and aisles arranged asymmetrically - intimate, relaxed environment -found in specialty stores

digital signage

- dynamic and effective - easily changed - more expensive

Three methods to increase consideration

- increase beliefs about a store's performance - change customer's importance weights - add a new benefit, such as fair trade

Reducing information search

- informed salesperson can be convincing - services provided by retailers - everyday low pricing (EDLP) strategy

Digital Information search

- intelligent agents -consumer reviews -search engine optimization

Stimulating need recognition

- must recognized unsatisfied needs before being motivated to fill them -advertising, social media, emails, direct mail, publicity, special events stimulate outside of a store -visual merchandising, salespeople stimulate inside of a store

grid layout

- parallel aisles with merchandise on both sides of the aisle - for customers who want utilitarian benefits store offers - locate products easily that can be purchased quickly - cost-efficient - limits center-store sales

Digital information search and price competition

- profound impact on information search - consumers can easily compare pricing - showrooming (QR reader and Googles shopping feature)

Types of Fixtures

- straight rack - rounder - four-way - gondola

Ways to increase evaluation into a purchase

-Make it easy to purchase -Provide sufficient information that reinforces evaluation -Reduce risk of making purchase mistake -Create a sense of urgency or scarcity

Consumer Buying Process

1. Need Recognition - begins when customers recognize an unsatisfied need 2. Information Search - consumers then seek information to satisfy the need 3. Alternative Evaluation - consumers evaluate the alternative 4. Purchase - merchandise or product purchased 5. Post Purchase - post purchase evaluation

Two factors affecting search

1. Number of competing brands and retail outlets 2. Time pressure to make a purchase

Needs filled by:

1. Stimulation: background music, visual displays, scents, and demonstrations in stores and malls to create a carnival like 2. Status and power: a need for status and power that is satisfied through shopping 3. Adventure: enjoy finding bargains, looking for sales, and finding discounts or low prices

Store design objectives

1. implement the retailer's strategy - meet needs of target market - build sustainable competitive advantage 2. build loyalty by providing a rewarding shopping experience - utilitarian vs. hedonic 3. increase sales on a visit - design stores in a manner that motivates unplanned purchases 4. control costs to increase profits - store design can also affect labor costs & inventory shortage 5. meet legal requirements (American Disabilities Act)

Impulse buying

A buying decision made by customers on the spot when they see the merchandise

sales per square foot

A measure of space productivity used by most retailers since rent and land purchases are assessed on a per-square-foot basis.

sales per linear foot

A measure of space productivity used when most merchandise is displayed on multiple shelves of long gondolas, such as in grocery stores.

Buying Situations

A method of segmenting a retail market based on customer needs in a specific buying situation, such as a fill-in shopping trip versus a weekly shopping trip.

Post purchase evaluation: satisfaction

A post consumption evaluation of how well a store or product meets or exceeds customer expectations

physiological risk

A type of product or a way of behaving that is temporarily adopted by a large number of consumers because the product, service, or behavior is socially appropriate for the time and place

which of the following should retailer's provide for disabled customers? A. ALL OF THESE B. accessible dressing rooms C. accessible checkout aisles D. a lower checkout station E. fully accessible bathrooms

A. ALL OF THESE

Which of the following best describes the free-form layout? A. It is an aesthetically pleasing design and displays limited merchandise. B. It is very cost-efficient. C. It uses repetitive, symmetrical patterns D. It enhances the utility of a store's selling space by its tight arrangements E. It is the least aesthetically pleasing of all the store layouts.

A. It is an aesthetically pleasing design and displays limited merchandise.

A(n) ____ creates the customer's first impression of the store's offering and is the area where retailer's place their most compelling merchandise A. strike zone B. decompression zone C. end cap D. planogram E. gondola

A. STRIKE ZONE

Which of the following retail stores is most likely to have a racetrack layout? A. Ted's Department Store B. Star Tax Service C. Essential Supermarket D. Claire's Boutique E. Linda's Beauty Salon

A. Ted's Department Store

As Garry was waiting to pay for a bottle of aspirin at a pharmacy, he added a copy of TV Guide, a Snickers bar, and a pack of cheese crackers to his purchases. The area where Garry made his TV Guide and Snickers selections is called a(n) _____. A. cash wrap B. end cap C. gondola display D. promotional area E. freestanding fixture

A. cash wrap

In Sid's Surf Shop, there is a 10-foot long surfboard on legs with swimwear on it near the entrance to the department store where surfing merchandise is sold. the surfboard attracts many customers into that department. this is an example of a(n) _____. A. freestanding display B. bulk fixture C. gondola display D. cash wrap E. end cap

A. freestanding display

Which of the following store designs contains parallel aisles with merchandise shelves on both sides of the aisles? A. Grid Layout B. Boutique Layout C. Free-form Layout D. Loop E. Racetrack

A. grid layout

fair trade

Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.

promotional aisle/area

Area aisle or area of a store designed to get the customer's attention. An example might be a special "trim-the-tree" department that seems to magically appear right after Thanksgiving every year for the Christmas holidays.

feature areas

Area designed to get the customer's attention that includes end caps, promotional aisles or areas, freestanding fixtures and mannequins that introduce a soft goods department, windows, and point-of-sale areas.

William is always looking for a bargain and frequently visits the meat department to see the markdowns for meat dated to be sold that day. He finds a signage stating a half-price sale. This signage is an example of a _____. A. point-of-sale signage B. promotional signage C. category signage D. locational signage E. lifestyle signage

B. promotional signage

Evaluation of alternatives: the Multiattribute Attitude Model

Customers see a retailer, product, or service as a collection of attributes or characteristics -Predict a customer's evaluation of a retailer, product, or service based on: -Its performance on relevant attributes The importance of those attributes to the customer

Need recognition

Decline in the quality of your actual state based on current needs; actual state declined

Information Search

If seeking hedonic benefits, takes more time - more competition increases information search

Relationship between amount of information search and product knowledge

Inverted U shape

(T/F): the grid layout is well suited for customers who are primarily interested in the utilitarian benefits offered by a store

TRUE

strike zone

The area in a retail store that customers pass through after the decompression zone where retailers display some of their most compelling merchandise.

item and size presentation

The most common presentation, all the things in size order grouped together

post purchase cognitive dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyers' remorse.

financial risk

The risks customers face when purchasing an expensive item or service

problem recognition

Whenever consumer sees a significant difference between her current state of affairs and some desired/ideal state - problems arise/are recognized in one of two ways: 1. Need recognition 2. Opportunity recognition

planogram

a diagram that shows how and where specific SKUs should be placed on retail shelves or displays to increase customer purchases

brand loyalty

a favorable attitude toward and consistent purchase of a single brand over time

mannequin

a life-size dummy used to display clothes

Idea oriented presentation

a method of presenting merchandise based on a specific image or idea of the store - retailers group individual items to show customers how they can be combined or used

multiattribute attitude model

a model that combines a number of pieces of information about belief and evaluations of attributes of an object 1. Beliefs about performance - mentally process "objective" information - considers alternatives and forms impression of benefits 2. Importance Weights - a 10 point rating scale can indicate importance - importance of retailer's benefits differs for each customer 3. Evaluating Retailers - overall evaluation of alternative is related to sum of performance beliefs multiplied by importance weights

utilitarian benefits

a motivation for shopping in which customers accomplish a specific task, such as buying a suit for a job interview

price lining

a pricing policy in which a retailer offers a limited number of predetermined price points and/or price categories within a classification that are merchandised together

extended problem solving

a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk 1. Performance risk 2. Financial risk 3. Physiological risk 4. Psychological risk

habitual decision making

a purchase decision process in which consumers engage with little conscious effort Brand loyalty

grid layout

a store design, typically used by grocery stores, in which merchandise is displayed on long gondolas in aisles with a repetitive pattern

Search Engine Optimization (SEO)

a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business

racetrack layout

a type of store layout that provides a major aisle to facilitate customer traffic that has access to the store's multiple entrances. also known as a LOOP layout

gondolas

an island type of self-service counter with tiers of shelves, bins, or pegs -versatile -used in grocery stores and discount stores, but can also be used in department stores

Social risks

arise when customers believe a product will affect how others view them

psychological risk

associated with the way people will feel if the product or service does not convey the right image

color presentation

bold merchandising technique

Straight Rack

consists of a long pipe balanced between supports in the floor or attached to a wall

store advocates

customers who like a store so much that they actively share their positive experiences with friends and family

end caps

displays located at the end of an aisle in stores using a grid layout (grocery stores) - end cap displays that end in a disorganized dump bin encourage more purchases than an organized bin

free standing displays

fixtures that are located on aisles and primarily designed to attract customers' attention

Four-way Fixture

holds a large amount of merchandise and allows the customer to view the entire garment. commonly used by fashion-oriented apparel retailers - FEATURE FIXTURE

call to action signage

in-store displays placed strategically to encourage customers to engage with the retailer through quick response codes

Opportunity recognition

increase/craving towards an ideal state based on noticing opportunities, ideal state moves upward

performance risk

involves the perceived danger inherent in a poorly performing product or service

Gondola

island type of self-service counter with tiers of shelves, bins, or pegs. used extensively in grocery or discount stores

tonnage merchandising

large qualities of merchandise are displayed together to enhance and reinforce a store's price image

Vertical merchandising

merchandise is presented vertically using walls and high gondolas

multi attribute attitude model: implications for retailers

must complete marketing research to collect: - alternative retailers that customers consider - characteristic/benefits customers use when evaluating and choosing retailer - ratings of alternative performance on criteria - importance of criteria to consumer

limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time - impulse buying or unplanned purchasing

conversion rate

percentage of consumers who buy a product after viewing it

impulse products

products that are purchased by customers without prior plans. these products are almost always located at the front of the store, where they're seen by everyone and might actually draw people into the store

demand/destination merchandise

products that customers have decided to buy before entering the store

Rounder

round fixture that sits on a pedestal to hold a maximum amount of merchandise - BULK FIXTURE OR CAPACITY FIXTURE - smaller than a straight rack

hedonic needs

satisfied when purchases accomplish a need for entertainment, emotional, and recreational experience as in department stores or specialty stores.

Utilitarian needs

satisfied when purchases accomplish a specific task. Shopping needs to be easy, and effortless like Sam's or a grocery store.

consideration set

set of alternatives the customer evaluates when making a choice of a retailer to patronize

everyday low pricing (EDLP)

setting prices lower than competitors and then not having any special sales

hedonic benefits

shopping for pleasure, entertainment, and/or to achieve an emotional or recreational experience

category signage

signage within a particular department or sector of the store, category signs are usually smaller than directional signs. their purpose is to identify types of products offered, they are usually located near the goods to which they refer

Point-of-sale (POS) signage

signs places near the merchandise they refer to so that customers know the price and other detailed information

digital signage

signs whose visual content is delivered digitally through a centrally managed and controlled network and displayed on a television monitor or flat panel screen

Intelligent agents

sophisticated software programs that use collaborative filtering technologies to learn from past user behavior in order to recommend new purchases

free form layout

store design, used primarily in small specialty stores or within the boutiques of large stores, that arranges fixtures and aisles asymmetrically. also called BOUTIQUE LAYOUT

relative advantage

the degree to which a consumer perceives that a new product provides superior benefits

center store

the middle of each aisle in a grocery store or other store using a grid layout. contains less compelling and exciting products, though ones that customers still require such as cereal or detergent

atmospherics

the physical elements in a store's design that appeal to consumers' emotions and encourage buying

cash wrap

the places in a store where a customer can purchase merchandise and have it "wrapped" - placed in a bag. also called point-of-purchase (POP) counter or checkout counter

Showrooming

the practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

Information Search

the stage of the buyer decision process in which the consumer is motivated to search for more information. 1. Internal sources: information in a customer's memory such as names, images, and past experiences with different stores 2. External sources: information provided by the media and other people

Consumer Buying Process

the steps the customers go through when buying a product or service

promotional signage

this signage describes special offers and may be displayed in windows to entice the customer into the store

Types of Needs

utilitarian and hedonic