it is important to understand customers needs when deciding on what kind of

It is important to understand customers needs when

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it is important to understand customers’ needs when deciding on what kind of retail environment is appropriate for getting a product to the consumerconsumer utilitiestime: a retailer that provides access to products a convenient times (24 hour CVS)place: a retailer that provides access to products at convenient places (ATM)form: a retailer that provides the production or alteration of a product (ivillage.com)possession: a retailer that makes the purchase process easier (Saturn)Classifying retail outlets (form of ownership, level of service, merchandise line)Retailers based on form of ownershipindependent retailer:independent business owned by an individual owner is the bossfor customers, the independent store can offer convenience, personal service, and lifestyle compatibility corporate chain:multiple outlets under common ownership centralization in decision making and purchasing is commonadvantages in dealing with manufacturers for consumers= lower prices contractual systems:independently owned stores that band together and act like a chain
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franchise systemmore involved in community than corporate chain Level of service provided (self service, limited service, full service)self service:requires customer provides many functions and little is provided by the outletex] red boxlimited service:the retailer provides some services such as; credit and merchandise return, but not others such as clothing alterations ex] targetfull service:provide many services to the customersex] nordstromTypes of merchandise offered (depth of line, breadth of line)depth of line:stores that carry a considerable assortments of a related line of itemsex] sephora; specialty storesbreadth of line:refers to the variety of different items a store carries, from appliances to books limited depthex] walmart; general merchandise stores“merchandise scrambling” - offering several unrelated product lines in a single store (very common today)“hypermarkets” are large stores based on a simple concept; offer everything under one roof thus eliminating the need tostop at more than one location. these stores provide variety, quality, and low prices for groceries and general merchandise items “intertype competition” scrambled merchandising for the retailer means there is competition between very dissimilar types of retail outletsForm ofOwnershipIndependentRetailerIndependent business owned by individual ** Convenience & Personal ServiceStanleyKorshakCorporate ChainMultiple outlets under one owner ** Centralized Decision MakingVictoria SecretContractual SystemsIndependently owned stores that act like chain (Franchising)**less control but offload risk McDonaldsLevel ofServiceProvidedSelf ServiceCustomer provides many functions and little is provided by the outlet Checkouts &Car WashLimited ServiceRetailer provides some service but not othersTarget (shoedepartment)Full ServiceProvide many services to customer (Specialty & Department)Nordstrom’s MerchandiseLineDepth
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