CH 15- Retail Marketing

What is Retail Image?

Retail Image is perception or “mental picture” that a consumer has of a retail store or business. It is subjective, meaning two different people could look at the same store and have different opinions based on their personal experiences

What are the five core factors that contribute to a retailer’s overall image?

1. Store Location (Where it is)

2. Customer Service ( How you are treated)

3. Atmosphere ( How the store feels)

4. Merchandise Attributes (What they sell)

5. Price (What it costs)

How can Location change the image of the exact same store?

Even if the products and colors are the same, the location changes the “vibe”. For example, a Publix in a college heavy area like Ocala Road might feel hectic and student- centric, while a Publix in a quiet neighborhood feels small and relaxed

How do Merchandise and Price work together to create an image?

The quality of products and their cost tell a “story”. Whole Foods had an image of being very expensive (the “Whole Paycheck” reputation), so they have spent years using Amazon-backed price cuts on staples like salmon and tomatoes to try and change their image to be more affordable while keeping their “high-end-quality” status

What are the “Golden Rules” of Customer Service impact?

• The 1 in 25 Rule: Only one out of every 25 unhappy customers will actually complain to the retailer; the rest just leave with a bad image

• The 40-to-1 Rule: It take nearly 40 positive experiences to fix the damage caused by just one negative review

What is the ACSI?

The American Customer Satisfaction Index. It is an annual report that ranks retailers based on customer satisfaction. Top-tier examples include Amazon (Internet), Costco (Discount stores), Wegmans (Supermarkets), and Ace Hardware (Home improvement)

Define Atmospherics

These are the physical and tangible characteristics of a store used to create a specific image and draw customers in. A good atmosphere should immediately tell a shopper the store’s name, what they sell, their “claim to fame”, their price level, and their personality

Does a Non-store (Online) retailer have an atmosphere?

Yes. It is based on the user interface and website design. Research shows it takes a visitor less than two-tenths of a second to form an opinion of a brand once they click on their website

What is Exterior Planning and the “Barbecue Anomaly)

Exterior planning includes the storefront, windows, and parking. Usually, retailers want a “clean” look, but in some industries like barbecue, a rundown exterior (like Franklin’s BBQ in Austin) can actually create a positive image of “authenticity” and high quality

Define the Straight (Gridiron) Traffic Pattern

This is the “Grocery Store” layout with long, parallel aisles

Main Advantage (Straight Gridiron traffic pattern)

It is highly efficient for quick shopping and easy for the store to manage inventory

Main Disadvantage (Straight Gridiron traffic pattern)

It feels impersonal and does not encourage “browsing” or looking for fun items

Define the Curing (Free-flowing) Traffic Pattern

This is the “Department Store” layout where fixtures are placed in a more open, relaxed way

Main advantage (Curving free flowing traffic pattern)

It creates a friendly, unhurried atmosphere that encourages customers to browse and make impulse purchases

Main Disadvantage (Curving free flowing traffic pattern)

It is less efficient, wastes floor space, and can be confusing for customers trying to find one specific thing