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Unformatted text preview: Chapter 17: Retailing I. The Value of Retailing Consumer Utilities Offered by Retailing o Time, place, form, possession Global Economic Impact of Retailing o Three of USs largest businesses are retailers II. Classifying Retail Outlets Form of Ownership o Independent Retailer Owned by an individual Owner can be his or her own boss o Corporate Chain Multiple outlets under common ownership Chain operation: centralization in decision making Can bargain with manufacturer to obtain good service or volume discounts Consumers benefit from multiple outlets with similar merchandise and consistent management o Contractual Systems Independently owned stores that band together to act like a chain Business-format franchises vs. product-distribution franchises Franchising offers an opportunity for people to enter a well-known, established business for which managerial advice is provided Also, franchise fee may be less than setting up an independent business Level of Service o Self-service: customers perform many functions, little provided by outlet o Limited Service: provide some services such as return, but not others, like clothing alterations o Full-service: many services provided to customers Type of Merchandise Line o Depth of product line Considerable assortment of a related line of items limited-line stores Single-line stores carry tremendous depth in one primary line (Victorias Secret) Specialty discount outlets focus on one type of product...
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- Fall '07