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1.2 Define Retail
What is Retailing?
|A business that sells products and/or services to consumers
|The method by which consumers acquire products and services
|Produces the products
|Buys large quantities of products directly from the manufacturer
|Receives, stores,displays, and sells the product to customers
|Provide customers a convenient shopping experience
|General Merchandise. Offer good services and a broad variety and assortment of products of mid-to-high quality.
|Sales people contact customers directly in a convenient location, often the customer's home, demonstrate the product; take orders; and deliver the products or perform the services
|Offer broad variety of merchandise, limited service, and low prices
|Offer brand-name merchandise at a discount
|Offer an assortment of brand-name merchandise at a significant discount off the manufacture's price
|Off-price stores that are owned by the manufacturer or retailer
|Started online and continue to all their business that way
|Deep but narrow assortments with a high level of customer service.
|Combine a supermarket and a department store, resulting in a gigantic retail facility that carries an enormous range of products, from apparel to groceries to automotive supplies, all under one roof.
|Sell a wide variety of goods including food, alcohol, and medicine
|Sell secondhand clothes and other household goods, typically to raise funds for a charitable institution. Products are usually donated by individuals and businesses rather than purchased from a wholesaler or manufacturer
|Whole Sale Clubs
|Some wholesalers started selling products directly to consumers. This places them in the unique role of both wholesaler and retailer
|single store or small, regional chain. Often able to tailor offerings to meet the demand of local consumers.
|Company that operates multiple stores under common ownership and usually has centralized decision-making. Generally more capable of negotiating lower prices from wholesalers and manufacturers given their size.
|license granted to another party to market a company’s goods or services in a particular territory. Ex: KFC, Sonic, Pizza Hut, Fantastic Sam’s
|describes the presence of a physical storefront and face-to-face customer experiences
|buying and selling through the internet via electronic devices such as a computer, smart phone, or tablet.
|retail operations offering customer transactions through multiple connected channels, including some or all the following: brick-and-mortar stores, online store sites, mobile apps, and telephone.
|focus on creating a seamless customer experience through any and all shopping channels: mobile, tablet, computer, brick-and-mortar stores, television, radio, direct mail, and catalog.
|Wants to be the first to purchase the latest fashion or technology
|Spends time checking out products through advertisements, visiting different stores, or searching the internet for the best price or deal
|Makes quick purchase decisions
|Usually waits to see what the latest trends will be
|Hard to predict or understand
|Shops for fun. Often not looking for anything in particular
|The customer's recognition that some product or service may solve an identified problem
|Determining which goods and services will help solve the identified problem or fulfill and identified problem
|Evaluation of Alternatives
|Having enough information to select from alternatives, the customer will mentally rank the alternatives based on his established criteria and decide which product to purchase
|The customer now decides where to buy the selected item
|The customer will review how he/she felt about the process and product