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1.2 Define Retail
What is Retailing?
Term | Definition |
---|---|
Retail | A business that sells products and/or services to consumers |
Retailing | The method by which consumers acquire products and services |
Manufacturer | Produces the products |
Wholesaler | Buys large quantities of products directly from the manufacturer |
Retailer | Receives, stores,displays, and sells the product to customers |
Convenience Stores | Provide customers a convenient shopping experience |
Department Stores | General Merchandise. Offer good services and a broad variety and assortment of products of mid-to-high quality. |
Direct Selling | 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 |
Discount Stores | Offer broad variety of merchandise, limited service, and low prices |
Off-Price Retailers | Offer brand-name merchandise at a discount |
Closeout Stores | Offer an assortment of brand-name merchandise at a significant discount off the manufacture's price |
Outlet Stores | Off-price stores that are owned by the manufacturer or retailer |
Pure Play | Started online and continue to all their business that way |
Specialty Stores | Deep but narrow assortments with a high level of customer service. |
Super centers | 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. |
Super Markets | Sell a wide variety of goods including food, alcohol, and medicine |
Thrift Stores | 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 |
Independent Establishment | single store or small, regional chain. Often able to tailor offerings to meet the demand of local consumers. |
Corporate Chain | 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. |
Franchises | 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 |
Brick-and-Mortar | describes the presence of a physical storefront and face-to-face customer experiences |
E-commerce | buying and selling through the internet via electronic devices such as a computer, smart phone, or tablet. |
Multichannel | 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. |
Omnichannel | 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. |
Innovative Customers | Wants to be the first to purchase the latest fashion or technology |
Comparison Shopper | Spends time checking out products through advertisements, visiting different stores, or searching the internet for the best price or deal |
Impulse Buyer | Makes quick purchase decisions |
Follower | Usually waits to see what the latest trends will be |
Diverse Shopper | Hard to predict or understand |
Recreational Shopper | Shops for fun. Often not looking for anything in particular |
Need Recognition | The customer's recognition that some product or service may solve an identified problem |
Information Search | 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 |
Purchase | The customer now decides where to buy the selected item |
Post-Purchase Evaluation | The customer will review how he/she felt about the process and product |