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.