Retail Management Exam 3

Physical Evidence

_____________Evidence: tangibles that customers are exposed to during contact with the retailer, colors of the walls, are the parking lots or restrooms clean?

geographic (trading) isolated store or planned shopping center location type alternate

- Choosing a Store Location: o Step 1: evaluate alternate ______________(_________) areas in terms of residents and existing retailers Look at whats around, the residents, etc. o Step 2: Determine whether to locate as an ______________ store or in a ________________ shopping center Mall, isolated store, shopping center? o Step 3: Select the location _______ Some businesses want to be only drive through, a place for people to sit down and relax? o Step 4: Analyze ____________ sites contained in the specific retail location type See what fits best based on the first 3 steps Chick Fil A does a great job

primary

____________ trading area: 50-80% of a stores customers

operations

________________ is the process to which the product is provided to the customer

trade area

___________________: a geographic area containing the customers of a particular firm or group of firms for specific goods or services. This is the geographic area where customers are coming from

isolated advtgs competition flexibility convenience facilities parking Dis attracting cumulative advertising promotions

1. ____________ store Freestanding retail outlet with no adjacent retailers -Ex: dollar general, 7/11, convenience stores are often like this Advantages: - No direct ______________ (isolated, alone, usually offering the lowest price in an area where Walmart won't be there to compete) - _______________ (with the store, with the layout, with parking) - Good for ___________ stores - Adaptable _____________ - Easy _____________ - Excellent for store that generates own traffic Disadvantages: - Difficulty _______________ customers (they come to you for you alone, they either come to you or not) - Lack of ___________ attraction for customers (only you there) - High __________________ expenses (it's just you vs in shopping centers you usually split advertising) - No cost sharing for ______________

customer actions co-creation

1. ___________________: customer steps taken as part of service delivery. This allows you to train the customers, ex Starbucks has trained you to order small medium or large as venti, tall, etc. They are training you to make the process more efficient. ________________: customers play a role in the creation of the value from that exchange

Visible Contact Employee Actions

2. ____________________ Employee Actions: What's happening with that front-line employee that you can see? face to face encounters with the customer. Ritz Carleton is top 5 if not the best in this aspect. Customer service. The Ritz uses the customer's name, can reset internal clocks (if you feel like you're waiting too long they can do something for you), own the relationship (the person who first hears the complaint has to solve the problem)

Planned Shopping Center advtgs: suburban one-stop promotions transportation pedestrian ex: balanced dis flexibility rent competition anchor

2. _________________________ Center: Centrally owned or managed and well-balanced. Outlet formats are a good example. Someone owns the real estate (centrally owned or managed) and well balanced means the stores work together (not 4 direct competitors). Architecturally unified, centrally owned (or managed), operated as a unit, based on balanced tendency (not have 4 Mexican restaurant in one place), also usually good parking access Advantages: - Well rounded assortments (because its balanced and centrally managed, you can go in and pick up everything you need, one stop shopping) - Strong ___________ population ______-stop family shopping Cost sharing of ______________ (promotions are shared) _______________ access ______________- traffic o Ex: shopping center with whole foods, francescas, lululemon, four rivers. These are all higher prices and the ______________ tendency makes sense by recognizing that the customer base can pay more. Disadvantages: - Limited ___________ - Higher ______ - Restricted product offerings in lease - __________________ (in certain cases can be problematic if not well balanced) - Requirements for association memberships - Domination by __________ stores (important* whole foods would be the anchor store, this is great as long as the anchor store is doing well but often times you will see that the anchor store will go under and when the anchor goes under then they all will) - Impact of store closings on affinities

customer actions onstage actions backstage actions

A blue print is split into: - _________ actions: customer steps in the delivery of a service - ____________ actions: actions executed by the employees -________ actions: actions that are happening but you as a customer don't see them So the blueprint: allows you to see all potential touch points and fail points along the process It shows a visual of day to day operations

cross channel

A/ an _______________ is intermixing these channels. So you can call in an order and pick it up at the store. Buy in the store, return online.

channel

A/an _______ is the way in which which a customer might interact with a retailer

Single

A/an ________ is the original, brick and mortar, walk in make a purchase, interact with the employees, etc. The only way you are interacting with the firm is through that single channel, in the store. This is the one piece. They only sell their product in one way. So it can be solely an online company, or solely a brick and mortar company.

omni channel ease

A/an ___________ is how we interact with companies through social media, email, etc. We learn about the companies through their websites, third party sites, etc. There are just so many different ways we can interact with the company (not just purchasing). This is what we have today! Customers don't care about the omni channel but they care about their ________ of shopping. We have grocery stores who deliver now which just makes your life as a consumer so much easier. Ex: Disney you can buy things online, watch movies, go to the park, buy shirts, magic bands (you get your picture taken and its stored to your magic band). This makes purchasing so easy and more likely to buy more. It makes it easier for you to spend money.

multi-channel

A/an__________ is the idea is that you can interact with buying through brick and mortar, a catalog, online, call in order, etc. You are interacting with each of these channels individually. You buy from the brick and mortar, you return to the brick and mortar. You buy from the online, you return to the online, etc. The interaction is with the same company but your interaction is solely with the channel. Different options of single channel.

socioeconomic demographics promotional overlap geographic weaknesses

Benefits of trade area analysis: Very beneficial. If you wanted to look at college town and see what it needs right now, you would identify certain needs for the college demographic, the _____________________ characteristics. Discovery of consumer __________________ and socioeconomic characteristics Opportunity to determine focus of _________________ activities (college town is feeding a very specific demographic, college students) Assessment of effects of trading area ______________ (where else will your target consumer go? What will draw them into one area and not the other?) Will chain's competitors open nearby? Discovery of ideal number of outlets, geographic _________________ Review of other issues (e.g. transportation)

assembly and operating warranty complaint stocked payment

Consumers Need To Know: From the supplier: - ___________ and ____________ instructions: how do we use this product? What features does it have? Knowing how the whole product works - Extent of ___________ coverage: if im not happy who do I respond to? - Where to send a ____________ From the retailer: - Where specific merchandise is ____________ in the store - Methods of __________ acceptable - Rain check and other policies: promotions, exchanges, etc

population size and traits competition transportation access parking availability stores property costs length of agreement legal restrictions

Criteria to consider when choosing location: Population _______ and _________: what is it about this population that makes sense? _________________: good or bad? Initially we think competition is bad but if you look in the retail sphere you will see retailers putting themselves right next to each other because it can be good, it is nice to have every car dealership on the same street so you can go and look at it all. _________________ access: how easy is it to get to and from? Destination retailers: important to be next to a major roadway. ________________ availability: have parking available Nature of nearby ____________: do the other stores fit in line with what you have planned for your store? Does it fit the demographic? _____________ costs: ___________ of agreement ________ restrictions: what you can and cant sell, you can sell fireworks in Georgia but not Florida

right job standardization cross training employee empowerment

Maximizing Personnel Productivity: The role of employees: - You can maximize productivity by hiring the _______ people. Ex: southwest hires for an attitude not a skill set. Look for matches in personal values, observe people skills, assess emotional strength (handling frustration, disappointment, etc) - Job ______________ (create uniform tasks for similar positions in different departments) - _______________: the act of training in more than one role - Employee ______________: allowing your employee the freedom to make decisions

Blueprinting

Operations __________________: It is a great diagnostic tool that gives next steps to form operations. It uses a flow chart of all the actions that are performed between the employee and the customer. It is the systematic listing of actions performed by employees and customers

new models and model changes training sales Justifications why customer

Retailers need to know: From the supplier: - Advance notice of new _________ and model __________: (packaging changes that affect the way items are displayed, taller bottles have to be top shelf). - ___________ materials: - _________ Forecasts: - _________________ for price changes: (retailers need to know why the supplier ups the prices so they can tell the customer why the prices increased) From the customer: - ______ people shop there - _____________ likes and dislikes - Where else people shop

category sales Inventory turnover Feedback returns attitudes brand loyalty premium

Suppliers need to know: From the retailer: - estimates of ________________, what are the expecting to sell? - _____________________________ rates: what are the selling faster? This helps to forecast what they need to have available - _______________on Competitors: what the retailer is doing in response to competitors? Are they price matching? -Level of customer ______________: what are they returning? From the customer: - ____________ toward styles and models: what do they like, what do they not like, how loyal are you, what do you want to see, would you be open to a higher end product or cheaper? - extent of _________________ - Willingness to pay a ______________ for superior quality

consumer retailer

Take away: what type of scenario can be explained through these. Ex: Brian is curious about where he can get more info on how to give a raincheck option this is an example of the ______________ needing to know from the ______________

minimize Self retail firm

Technological Decisions: - Self checkout: some like it some don't, - Self service kiosks in McDonalds These both help ___________ wait times Retail ______ Service: A national bank reported overall satisfaction went down when incorporating self service. There is no ability to wow, you can only meet expectations. Face to face conversations could wow and increase that satisfaction overall Large restaurant chain reported increase in overall complaints when using self-service technology. You lose ability to read customer so you cant prevent issues The use of self service must be aligned with the goals of the ________________: Walmart makes sense to be self service because they are competing with Amazon while a mom and pop shop should steer clear.

operations blueprint

The ________________________ is a great diagnostic tool to see what touchpoints happen, problem-issues in the overall operation process

Trade Area Analysis

The broad term for the 4 steps above is _________________________.

trend analysis consumer surveys computerized trading area analysis model

The trading area of a new store: - Different tools must be used when an area is evaluated in terms of opportunities rather than current patronage and traffic patterns - If you don't have current data on the stores in the area then you have to go out and get it through things like: - _______________ analysis (what's happening with current competitors in the market) ___________________ surveys (what do consumers say they want) ___________________ trading area analysis model (suggest success moving forward)

more data analytics Instant gratification ease

With mobile retailing a firm needs to know about mobile: - When customers know more, they buy ______. Looking up Tvs on best buy before going into the store - This provides analytics, firms know if you are making purchases through your phone and have to react to this. __________________ is a must have capability - _____________________ is the retailers best friend: constant reminders of shipment. This need is necessary for consumers, ex: by sharing your purchase on social media its almost like you actually have the product. - The boundaries between social media and retail apps are blurring: you can now purchase things through social media so now companies have advertising on your social media sites. - Mobile payments are more efficient for everyone: it is so easy to make a payment through a mobile device, _______ of use. - Just think of how you use your phone in the retail process.

touchpoints

Within a blueprint there are _______________: the ways in which a customer experiences a product of service. ex: If it is a hotel, you are greeted by the front desk (touchpoint), then they carry your bags to your room (touchpoint) but these are obvious. - Disney realizes that the second someone books their ticket they start having touchpoints and they are able to add in additional touchpoints. Disney can pick up your bags from the airport, take your bags to your resort, etc.

Secondary intersections spread advtg residential convenience

_________ Business Districts: This is after the central business district is formed and the city population begins to spread out.*some are made up of planned shopping centers, it is much more about the area rather than the structure. - Revolves around a major street __________. SBDs evolve with the _______ of the city Advantages: • Closer to __________ areas • Higher level of _______________-oriented products (not as high s neighborhood, but they are convenience because they don't want to travel all the way into the central business district) • Access to main roads

secondary

_________ Trading area: 15-25% of a stores customers

fringe

_________ trading area: all remaining customers

nontraditional retailing

_________: includes formats that do not fit into store and non store based categories. Includes video kiosks, airport retailing, and vending machines

mobile retailing

__________: Retail from your cellphone. This is going to be one of the biggest changes in retail.

airport retailing captive audience premium

___________: Why airports? They make sense because a lot of the time there are people with free time, it's a __________________ because you can't leave the airport, and usually airport travelers are higher educated which results in higher incomes which results in higher discretionary income, so they can make these big dollar purchase. They also have the excess free time and captivated audience. They may be in a situation where they need to buy a gift for the person they are traveling to, they will be more willing to pay, and they already know it's going to be expensive and that makes airports able to charge a __________.

central transportation pedestrian facilities

____________ Business Districts: formed around a geographic point where all public transportation systems converge. If its older maybe where the railroad ran through, maybe its at a river or where all the roads converge. Advantages: • Access to public ____________ • Higher ____________ traffic • Near commercial and social ___________ (concert halls, convention centers, etc)

Backstage

____________ Employee Actions: not face-to-face with consumers

primary data advtgs current relevant accurate collected for a specific purpose disadvtgs expensive time consuming perspectives

____________ data is collected for your study at hand. Advantages - _____________ -______________ -______________(known and controlled source) - _____________ Disadvantages: - may be more ___________ - is more _____________ - information may not be acquired - limited ________________ (because its coming directly from you)

direct selling multi level premium

____________: This includes any time there is a selling approach that involves direct, personal contact with consumers in their homes (and other non-store locations such as offices) and phone solicitations initiated by retailer. - Often associated with ___________________ marketing: having a team and getting someone to sell under you. The majority of direct selling is legit. - This is great for stay at home parents, etc. - Exs: CUTCO, the Pampered Chef (utensils that is hosted in a party environment and you can buy there), Boisset Collection (you have basically a wine tasting at your house and then you get a percentage of the sales). These come in and sell to you directly. - When selling _______________ products that often need to be displayed or shown how to use, the direct selling approach is good for that.

vending machines convenience

____________: the major benefit is that no personnel are required to sell day to day. Vending machines are a cash or card operated retailing format that sell goods and services and alloware basically 24 hour selling. Machines placed wherever needed, ___________________. Internationally they may offer hot pizza, beer. The future of vending machines: there is a growing concern with obesity and you are starting to see in communities install legislation that says what can and can't be sold like higher sugar products. They are about convenience and busy schedules: millennials no longer think cereal is a convenient breakfast, 40% of millennials think its inconvenient, and because of this we might see more granola bars and breakfast items in vending in the future. There are also vending machines that can customize orders. We are looking for as customers is this technology piece answering a lot of our questions: online ordering, interactive vending machines (remembering personalized orders, siri like interactions)

Flagship volume largest

_____________ Store(s): - They represent a prominent location. There may be one in multiple cities, nations, in the world, etc. - Store that holds/sells the highest ___________ of merchandise. - A chains ___________ store. Maybe the sales are larger, it's the largest in physical square footage. o Ex: REI: they have a climbing wall at their location in Seattle. They also have a wall In there Denver location but in DC they mostly just sell bikes. - Flagships are altered to meet the needs of the specific community o Ex: Apple just opened a flagship store in Chicago: it has glass walls but after winter in 2017 the glass was cracking because of temperature and they didn't have gutters (water and ice falling on customers) , birds were crashing into the glass. Gorgeous store but had problems o Ex: Louis Vuitton in Tokyo has an underwater system o Ex: Tiffany & Co in Manhattan, maybe one of the most prestigious flagship stores. Home to the tiffany diamond, a lot of proposals nearby

video kiosks faster down

_____________: ex: Redbox, vending machine approach to buying certain products. We are moving more towards technology in settings like restaurants. So even if you are in a traditional setting, you can order from the iPad and pay and everything. This removes employees from the experiences and makes it __________ and cuts labor costs __________. This also includes using apps for ordering. From the surface it seems amazing BUT older consumers tend to enjoy interaction with employees. This technology is efficient, but you are never wowed because there is no personal interaction. Technology might make things easier, but it cannot wow, it also doesn't facilitate customer feedback, and upselling is a concern. In certain situations, you might want upselling like when pairing a fine wine with food and technology can't do this. So, the takeaway is technology can add value to an experience but there is also some negative.

direct marketing Gamification Location

_____________: this is communicating directly with the customer one on one - We get emails sent directly to us, try to make them sound as customized as possible. Getting flyers in your mail box, etc. The opposite of direct marketing would be a billboard on Tennessee that is marketing to everyone who drives by it. - How has this changed? There are so many text messages now (promotions texted to you), ex: starbucks knows what you purchase because of the app, they can then send you text promotions that cater to exactly what you buy. Ex: McDonalds app, they have games and kids want to play the game and see McDonalds. This is called ______________ - _____________ based direct marketing is lacking, they need to get better at pinning down people in a certain location with deals. - Ex: 2015 National Dog Day: Pet Smart did this #nationaldogday and they had 780,000 tweets that they were able to manage.

Neighborhood advtg location hectic

______________ Business Districts This pops up because of the needs of the neighborhood rather than a certain location. Formed to satisfy the convenience-oriented shopping needs of a neighborhood Advantages: • Convenient _______ • Parking • Less ______ than other business districts

Information Flow

______________: what information should be shared between the following groups? - Think about Publix, they have a great relationship with ConAgra foods who supply most of their foods. They need to support each other and share information because they work together. Also Publix needs to learn from its customers and its customers need to learn from Publix. - Retailer is in the middle and shares info with the supplier and customer.

Support Processes

________________ Processes: things that are in place that will allow the firm to carry out the services. Necessary functions crucial to carrying out the services

data mining

________________: taking massive amounts of data and using it to make decisions about customers, products, promotions, etc. It is the in depth analysis of information to gain specific insights about customers, product categories, vendors, etc.

consumer insight

_________________: is the buzzword for datamining

secondary advtgs inexpensive fast perspectives credible background disadv incomplete dated accurate credible

__________________ Data: This is data that already exists Advantages: _______________ __________ Several sources and _______________ Generally _______________ (make sure to check your source) Provides _____________ information Disadvantages: May not suit current study May be ____________ May be ___________ (if its old, is it even relevant) May not be ___________ or ____________

Retail Information System (RIS) anticipates continuous

__________________: This is how managers make decisions, and allows for management and direction of data - ___________ the info needs of retail managers - Collects, organizes, and stores relevant data on a ____________ basis - Directs the flow of info to the proper decision makers

micromarketing niche

__________________: is an application of data mining whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments. This is about the target market strategies where you look for a focus retail strategy that aims at a specific customer segment: _________ marketing.

department stores convenience stores

_____________________ stores will have a large trading area while _________________ stores will have a very small trading area

customer prioritization

_____________________: This comes from micromarketing. We have gotten so good at data that we can give you promotions that are a perfect fit for you, this is micromarketing. We can do things exactly like you like them. Ex: Hilton and Delta can prioritize certain customers based on how often they use them etc. Double edged sword: What's the cost for prioritizing a customer? Is it worth it?

Geographic Information Systems software

_______________________(______) Software: It shows you info about location specific data such that it can help you make decisions about the trading area with things like population demographics, different customer purchases, competitor locations, etc. o It is digitized mapping with key location specific data used to graphically depict trading area characteristics such as Population demographics Data on customer purchases Listings of current, proposed, and competitor locations o Ex: imagine if you're making decision and you have a prime location, GIS will show you that 84% of revenue will be from the north. Should you go after more of the south customer base? Should you move a store up north to take advantage of this? o You can get population information, household annual income, ages, households, where they eat, etc.

Unplanned Business Districts 1. central 2. secondary 3. neighborhood

__________________________: The business district was not planned, no developer, it just happened to evolve on its own as a business district. 3 kinds: 1. _______ business districts 2. ________ business districts 3. _______ business districts

data base management loyalty programs customer analysis promotion evaluation trade area analysis

___________management: an element in RIS. Now we have huge amounts of data and we need to use this data to manage things. Ex Starbucks: they can track everything about your purchase and they can start managing their loyalty programs with this info. System gathers, integrates, applies, and stores information in related subject areas o Used for: _____________ programs Customer _____________ ________________ Evaluation _______________ Analysis (how far are you willing to travel to this retailer compared to another, should we open one closer to you?

C N S

o Ex: which format would work best for: Fine Dining Restaurant: ____ B D Dry Cleaners: ____BD Trader Joes: _____BD