MRKT FINAL REVIEW!!!!.docx - FINAL REVIEW 1 Chapter 16 a Possession Utility 437 FIGURE 16-1Which retailer best provides which utilities The utilities

MRKT FINAL REVIEW!!!!.docx - FINAL REVIEW 1 Chapter 16 a...

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FINAL REVIEW!!!!! 1. Chapter 16: a. Possession Utility 437 FIGURE 16-1Which retailer best provides which utilities? The utilities provided by retailers create value for consumers. Time, place, form, and possession utilities are offered by most retailers in varying degrees, but one utility is often emphasized more than others. Look at Figure 16-1 to see how well you can match the retailer with the utility being emphasized in the description. Providing mini banks in supermarkets, as Wells Fargo does, puts the bank's products and services close to the consumer, providing place utility. By providing financing or leasing and taking used cars as trade-ins, CarMax makes the purchase easier and provides possession utility. Form utility—production or alteration of a product—is
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offered by Ralph Lauren through its online Create Your Own program, which offers shirts that meet each customer's specifications. Finding the right sporting equipment during the off-season is the time utility provided by Sports Authority. Many retailers offer a combination of the four basic utilities. Some supermarkets, for example, offer convenient locations (place utility); are open 24 hours a day (time utility); customize purchases in the bakery, deli, and florist (form utility); and allow several payment and credit options (possession utility). b. Depth of Product Line 441 The store carries a large assortment of each item, such as a shoe store that offers running shoes, dress shoes, and children's shoes. Stores that carry a considerable assortment (depth) of a related line of items are limited-line stores. Sports Authority sporting goods stores carry considerable depth in sports equipment ranging from weight-lifting accessories to running shoes. c. Limited Service 441 Limited-service outlets provide some services, such as credit and merchandise return, but not others, such as clothing alterations. General merchandise stores such as Walmart, Kmart, and Target are usually considered limited service outlets. Customers are responsible for most shopping activities, although salespeople are available in departments such as consumer electronics, jewelry, and lawn and garden. d. Specialty Outlet 441 Stores that carry tremendous depth in one primary line of merchandise are single-line stores. Victoria's Secret, a nationwide chain, carries great depth in women's lingerie. Both limited- and single-line stores are often referred to as specialty outlets . Specialty discount outlets focus on one type of product, such as electronics (Best Buy), office supplies (Staples), or books (Barnes & Noble), at very competitive prices. e. Category Killer 441 These outlets are referred to in the trade as category killers because they often dominate the market. Best Buy, for example, is the largest consumer electronics retailer with more than 1,650 stores, Staples operates more than 1,900 office supply stores, and Barnes & Noble is the largest book retailer. Interesting trends in this form of retailing include a shift to smaller stores, such as Best Buy Mobile stores, and the use of price matching to compete with online retailers.
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