Chapter_17 - CHAPTER 17 1 1 Retailing includes all...

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C HAPTER HAPTER 17 17 1. Retailing – includes all activities involved in selling, renting, and providing foods and services to ultimate customers for personal, family, or household use 2. Value of Retailing a. Economic value represented by people employed in retailing and total amount of money exchanged in retail sales b. Consumer Utilities Offered i. Time, place, form, and possession utilities offered by most retailers in varying degrees ii. One utility emphasized more than others c. Global Economic Impact i. More global expansion 3. Classifying Retail Outlets a. Form of Ownership i. Independent Retailer 1. Most common – independent business – 1 owner 2. Owner can be own boss 3. Customers – independent store can offer convenience, quality personal service, lifestyle compatibility ii. Corporate Chain 1. Multiple outlets with similar merchandise and consistent management policies 2. Under common ownership 3. Centralization in decision making and purchasing common 4. Large chain can bargain with manufacturer to obtain good service or volume discounts on orders iii. Contractual Systems 1. Independently owned stores that band together to act like a chain 2. Retailer-Sponsored Cooperatives a. Volume discounts commonly available to chains b. Gives impression of being large chain, which may be viewed more favorably 3. Wholesaler Sponsored Voluntary Chains a. Try to achieve similar benefits 4. Franchises a. Franchisee – individual or firm 1. Pays a 1 time franchise few and annual royalty, tied to sales b. Franchisor – parent company 1. Assists in selecting location, setting up store or facility, advertising, and training personnel c. Franchisee contracts with franchisor to set up business or retail outlet d. Business-Format – franchisor provides step-by-step procedures for most aspects of business; guidelines for most likely decisions franchisee will face e. Product-Distribution f. Selling franchises – organization reduces cost of expansion, but loses control b. Level of Service i. Self-Service 1. Customer performs many functions and little is provided by outlet 2. All nonessential customer services eliminated ii. Limited Service 1. Provide some services, but not others 2. Customers responsible for most shopping activities, although salespeople available in departments everywhere iii. Full-Service 1. Provide many services to customers 2. Rely on better service to sell more distinctive, higher-margin goods c. Type of Merchandise Line i. Depth of Product Line 1. Store carries large assortment of each item 1
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C HAPTER HAPTER 17 17 2. Specialty Outlets a. Focus on one type of product at very competitive prices b. Limited Line – carry considerable assortment (depth) of related line of items c. Single Line – carry tremendous depth in one primary line of merchandise 3.
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Chapter_17 - CHAPTER 17 1 1 Retailing includes all...

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