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Ch. 1 World of Retailing1. Retailer -a business that sells products and/or services to consumers for personal or family use2. Wholesalers -a business that sells to other businesses3. Functions performed by Retailers?4. IntertypeCompetition -Competition among retailers that sell similar merchandise usingdifferent types of retail outlets, such as drug and department stores.5. Intratype Competition -Competition between the same types of retailers. Department stores competing against department stores.6. Scrambled Merchandise -when retailers offer merchandise not typically associated with their type of store, such as clothing in a drugstore.7. Retail Strategy – a retail strategy should identify Target Market, Retail Mix (the products and service), and the Sustainable Competitive Advantage.Ch. 2 – Types of Retailers8. A Retail Strategy should identify: Target Market, Retail Mix, and Competitive Advantage9. Classification of different retailersa. Food Retailers:Warehouse Clubs, Convenience Stores, Conventional Supermarketsb. General Merchandise:Department Stores, Shoe Stores, Furniture Storec. Non-store Retailers:E-commerced. Service Retailers:firms that primarily sell services rather than merchandise such as, the dry cleaners, Geek Squad, and Jiffy Lube. Four elements used for classifying retailers: Types of Merchandise, Variety (breadth) and Assortment (depth), Services Offered, and Pricing10.Four Characteristics of Servicesa. Intangibility -services are less tangible than products--customers cannot see or touch them.b. Simultaneous Production and Consumption – Service providers create and deliver the service as the customer is consuming it.c. Perishability – Services are perishable. They cannot be saved, stored, or resold.d. Inconsistency – Because services are performances produced by people (employees and customers), no two services will be identical. 11.Service Marketing Trianglea.12.Variety -the # of merchandise categories a retailer offers. (Clothing, jewelry, electronics etc.)13.Assortment -the # of different items offered in a merchandise category. (In clothing, Polo, RL, TH etc.)Chapter 4 – Customer Buying Behavior14.Steps in the Buying Process:a. Need Recognition: i. Utilitarian - satisfied when purchases accomplish a specific task.ii. Hedonic - satisfied when purchase accomplish a need for entertainment, emotional, and recreational experience as in department stores or specialtystores.b. Information Search:i. Internal Sources are information in a customer’s memory, such as names images, and past experiences with different stores. The major source of internal information is the customer’s past shopping experiences.ii. External Sources consist of information provided by a host of sources. People search for products and information using search engines such as Google, visit the websites maintained by manufacturers and retailers, etc.c. Evaluation -amount of info search depends on the value from searching vs. the cost of searching i. 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 or the importance of those attributes.ii. Consideration Set:The set of alternatives the customer evaluates when making a selection. To be included in the Consideration Set, retailers develop programs to increase the likelihood that customers will remember them when they’re about to go shopping. iii. d. Choice - e. Visit - f. Loyalty - 15. Types of Buying Decisionsa. Extended Problem Solving – a purchase decision process in which customers devote considerable time and effort to analyze their alternatives. Customers typically engage in extended problem solving when the purchase decision involves a lot of risk and uncertaintyb. Limited Problem Solving – a purchase decision process involving a moderate amount of effort and time. Customers engage in this type of buying process whenthey have had some prior experience with the product or service and their risk is moderate.c. Habitual Decision Making – a purchase decision process involving little or no conscious effort. Example: “I’ll buy the same thing I bought last time from the same store.”d. Impulse Buying – a buying decision made by customers on the spot after seeing the merchandise. Putting smaller hedonic items, such as gum, mints, etc., at the front of the store in order to stimulate impulsive buying.e. Brand Loyalty – meant that customers like and consistently buy a specific brand in a product category. They are reluctant to switch to other brands if their favorite brand isn’t available.f. Retailer Loyalty – means that customers like and habitually visit the same retailer to purchase a type of merchandise.16. Reference Groups – includes one or more people whom a person uses as a basis of comparison for beliefs, feelings, and behaviors. A consumer might have a number of different reference groups, such as family, friends, celebrities, etc.17. Segmentation Methods:a. Retail Market Segment – a group of customers who are attracted to the same retail mix because they have similar needs.b. Geographic Segmentation – groups customers according to where they live.c. Demographic Segmentation – groups consumers on the basis of easily measured, objective characteristics such as age, gender, income, and education. This is the most common segmenting method because consumers in these segments can be easily identified.d. Geodemographic Segmentation – uses both geographic and demographic characteristics to classify consumers. This segmentation scheme is based on the principle that “birds of a feather flock together.” Consumers in the same neighborhoods tend to buy the same types of cars, appliances, and apparel and shop at the same types of retailers.e. Lifestyle Segmentation – of the various methods, this is the one that delves the most into how consumers describe themselves. Refers to how people live, howthey spend their time and money, what activities, they pursue, and their attitudes and opinions about the world in which they live.f. Buying Situation Segmentation – A mom, under normal circumstances, may view a wholesale grocery store higher than a regular grocery. But, if she runs out of milk during the week, she

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UTA MARK 4303 - Chapter 1

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