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Chapter 17 Retailing - Chapter 17 Retailing THE VALUE OF...

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Chapter 17 Retailing THE VALUE OF RETAILING *producers and consumers meet through retailing actions, but retailing also creates customer value and has a significant impact on the economy 1. Consumer utilities offered by retailing a. Utilities provided by retailers create value for consumers b. Time, place, from, and possession utilities are offered by most retailers in varying degrees CLASSIFYING RETAIL OUTLETS form of ownership- distinguishes retail outlets based on whether individuals, corporate chains, or contractual systems own the outlet level of service- describes the degree of service provided to the customer (self, limited, and full service retailers) merchandise line- how many different types of products a store carries and in what assortment 1. Form of ownership a. Independent retailer- one of the most common forms of retail ownership is the independent business, owned by an individual i. Can offer convenience, quality personal service, and life style compatibility b. Corporate chain- multiple outlets under common ownership i. Centralization in decision making and purchasing is common ii. A large chain can bargain with a manufacturer iii. Cheaper prices iv. Benefit in dealing with chains because there are multiple outlets with similar merchandise and consistent management policies c. Contractual systems- involve independently owned stores that band together to act like a chain i. Franchiser usually assists in selecting the location, setting up the store or facility, advertising, and training personnel ii. Franchisee usually pays a onetime franchise fee and an annual royalty 1. 2 types: business format franchises and product distribution franchises iii. By selling franchises, an organization reduces the cost of expansion but loses some control 2. Level of service a. Self-Service- requires that the customer performs many functions and little is provided by the outlet (gas stations) b.
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  • Winter '07
  • Joanne
  • retail outlets, market NONSTORE RETAILING, RETAIL OUTLETS form, office RETAILING STRATEGY, price retailing- involves

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