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