it is important to understand customers’ needs when deciding on what kind of retail environment is appropriate for getting a product to the consumer●consumer utilities○time: 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 ownership●independent retailer:independent business owned by an individual ○owner is the boss○for 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 common○advantages in dealing with manufacturers ○for consumers= lower prices ●contractual systems:independently owned stores that band together and act like a chain
○franchise system○more 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 outlet○ex] red box●limited service:the retailer provides some services such as; credit and merchandise return, but not others such as clothing alterations ○ex] target●full service:provide many services to the customers○ex] nordstromTypes of merchandise offered (depth of line, breadth of line)●depth of line:stores that carry a considerable assortments of a related line of items○ex] sephora; specialty stores●breadth of line:refers to the variety of different items a store carries, from appliances to books ○limited depth○ex] 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
