Chapter 16

Retailing and Wholesaling

retailing

consists of all activities involved in selling, renting, and providing products and services to uoltimate consumers for personal, family, or household use

top retailers

Walmart, Amazon, Costco, Kroger, The Home Depot, and Target

ways to classify retail

form of ownership

level os service

merchandise line

forms of ownership

distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet

levels of service

degreee of service provided to the customer from three types of retailers: self-, limited-, and full service-

merchandise line

describes how may different tupes of products a store carries and in what assortment

independent retailers

“locally owned and operated”

account for 3 million retail stores in the U.S.

corporate chain

multiple outlets under common ownership

ex. macy’s

contractual systems

independent stores work together to act as a chain

franchises

ex. mcdonalds, subway

levels of service

self-service, limited service, full service

self-service

customers perform functions

ex. redbox, gas station, NOT self checkout

limited service

provice some services

somebody is available if you need help

ex. walmart/target self checkouts

full service

provide full services to customers

ex. wedding dress store, restaraunt, car dealership, nordstrom

depth of product line

means that the store carries a large assortment of each product item

ex. shoe store, appliance store

category killers

dominate the market

taken over independent retailers

ex. best buy, staples

specialty outlets

limited- and single-line stores

ex. dick’s sporting goods

breadth of a product line

describes the variety of different product items a store carries

(bread is bought at walmart and walmart has a lot of breadth)

general merchandise store

carry a broad product line with limited depth

scrambled merchandising

consists of offering several unrelated product lines in a single store.

have a lot of breadth

hypermarket

form of scrambled merchandising which consists of a large store (more than 200000 square feet) that offers everything in a single outlet, eliminating the need for consumers to shop at more than one location

offers everything under one roof

supercenter

combines merchandise store with full-size grocery store

intertype competition

consists of competition between very dissimilar types of retail outlets that results from a scrambled merchandising policy

when an independent retailer competes against a corporate chain

nonstore retailing

retailing that happens without a physical store

vending machines and direct selling

vending machines (v-commerce)

serve customers when and where stores cannot

direct selling

retailing mix

consists of the activites related to managing the store and the merchandis in the store, which includes retail pricing, store location, retail communication, and merchandise

off-price retailing

consists of selling brand name merchandise at lower than regular prices

central business district

the oldest retail setting, usually located in the community’s downtown area.

poynts avenue

regional shopping center

retail lovations that consist of 50 to 150 stores that typically attract customers who live or work within a 5- to 10- mile range, often containing two or three anchor stores

the mall, anchor stores are dillards or jc penny

community shopping center

retail location that typically has one primary store (usually a department store brand) and often 20 to 40 smaller outlets, serving a population of consumers who are within a 10- to 20- minute drive

the dillards and marshalls area on the west side

strip mall

a retail location that consists of a cluster of neighborhood stores to serve people who are within a 5- to 10- minute drive

stores behind chik-fil-a

power center

a retail location that consists of a huge shopping strip with mutliple anchor (or national) stores

galleria malls, the mall of america

multichannel retailers

retailers that utilize and integrate a combination of traditional store formats and nonstore formats such as catalogs, TV home shopping, and online retailing

retail communication

positions store

creates retail image

shopper marketing

the use of displays, coupons, products samples, and other brand communications to influence shopping behavior in a store.

shopping experience

a consumer’s perception of an encounter with a store’s physical environment, personnel, and policies and procedures

category management

an approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a amarket segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category