What are retailers that offer a broad variety of merchandise limited service and low prices?

engage in buying, taking title to, often storing, and physically handling goods in large quantities and then reselling the goods (in smaller quantities) to other businesses or retailers. 

Ex: nike sells directly to consumers they are performing both production nd retail business activities.

• providing an assortment of products and services
• breaking bulk
• holding inventory
• providing services

corporate social responsibility

(CSR)

make sure desired merchandise is available

and

minimize the retailers inventory investment

Four elements of retail mix that classify retailers:

• type of merchandise/services offered
• the variety and assortment of merchandise
• level of customer service
• price of merchandise

General Merchandise Retailers

• department stores>upscale high-fashion; traditional; and value-oriented
• discount stores
• specialty stores
• category specialists
• home improvement centers
• drugstores
• off-price stores
• extreme value retailing

are big-box stores that offer a narrow but deep assortment of merchandise, self-service approach

staples

are small discount stores that offer a limited merchandise assortment at very low prices; broad variety but shallow assortment

Dollar general

closeout retailers--offer an inconsistent assortment of brand-name merchandise at a significant discount off the manufacturers suggested retail price (MSRP)

marshalls, tjmaxx...end of season merchandise that wil not be used in following seasons. Irregulars are merchansise that has minor mistakes in construction

• intangibility
• simultaneous production and consumption
• perishability
• inconsistency of the offering to consumers

• independent, single-store establishments

• corporate chains

• franchises

to compete, join a wholesale-sponsored voluntary cooperative group which is an organization operated by a wholesaler offering a merchandising program to small, independent retailers on a voluntary basis.

Retail chains: a company that operates  multiple retail units under common ownership and usually centralized decision making for defining and implementing its strategy

• touching and feeling products-5senses

• personal service

• risk reduction

• immediate gratification

• entertainment and social experience

• cash payment

• broader and deeper assortment
• more timely information for evaluating merchandise
• personalization-live chats

perceived risks in electronic shopping

1. security of credit card transaction on the Internet
2. potential privacy violations

1. electronic channel gives retailers an opportunit to overcome the limitations of their primary existing channel

2. increases customer satisfaction and loyalty

3. enables retailers to obtain valuable insights into their customers shopping behavior

4. economically enter new markets

5. provides the bases for building a strategic advantage

increased assortment

low-cost, consistent execution: ex-associates learn 

       regulars styles/habits

current information

increase customer satisfaction/loyalty

**by providing multichannel offerings, retailers can increase their share of customers' wallets-the percentage of purchases made from a specific retailer.

-property information about customer purchase history and shopping behavior

-unique "how-to" knowledge about coordinating

-operational activites across channels

providing integrated shopping experience/brand image, marketing activities,

information systems differ,

centralized customer data base,

pricing,

channel mitigation- collecting info about products on their channels and then buying the product from a competitor; can reduce by 1. offer uniquely relevant info based on proprietary data the retailer has collected about customers; 2. promote private label merchandise that can be purchased only from the retailer

Utilitarian need-shopping to accomplish a specific task; need adequate information and effortless shopping

hedonic need-shopping for pleasure. needs desire, excitement, stimulation, status, power, adventure.

-characteristics of the individual consumer

-the value the customer feels they can gain form searching v the cost of searching

-aspect of the market and buying situation in which the purchase is made

1. alternative retailers that customers consider
2. characteristics or benefits that customers consider when evaluating and choosing a retailer
3. customers ratings of earch retailers performance on the characteristics
4. the importance weights that customers attach to the characteristics

the set of alternatives the customer evaluates when making a choice of a retailer to patronize.

Four methods to ensure they pick you:

1. increase beliefs about the store's performance

2. decrease the performance beliefs for competing stores in the consideration set

3. increase customers importance weights

4. add a new benefit 

purchase decision process in which customers devote considerable time/effort to analyzing their alternativies; a lot of risk, important need, little knowledge

Retailers offer money back guarrentees

actionable

identifiable

substantial

reachable

geographically

demographically

geodemographically

Lifestyle/psychographics -VALS

buying situations

benefit segmentation

composite segmentation-uses multiple variables