Chapter 13

Question 1

What is Retailing?

Answer 1

All activities involved in selling goods and services directly to final consumers for their personal and non-business use.

Question 2

Identifying Types of Retailers

Answer 2

• Food Retailers
• General Merchandising Retailers

Question 3

3 types of Food retailers

Answer 3

Conventional supermarket (Sobeys)
Bix-box food retailer (Costco)
Convenience store (7-11)

Question 4

General merchandising retailers

Answer 4

Discount - Walmart
Specialty - Sephora
Category - Ikea
Department store – Hudson’s Bay
Drugstores - Rexall
Off-price retailer - Winners
Extreme value retailer - Dollarama
Services retailer – Great Clips

Question 5

Considerations in Developing a Retail Strategy

Answer 5

Choosing retail partners
Identifying types of retailers
Developing a retail strategy
Managing a multichannel strategy

Question 6

Choosing Retail Partners – based on Channel structure

Answer 6

Degree of vertical integration
Manufacturer brand equity among retailers and consumers
Power in the marketplace

Question 7

Choosing Retail Partners – based on Customer Expectations

Answer 7

Target market preferences
Target market’s need or expectation of the experience

Question 8

Choosing Retail Partners – based on Channel member characteristics

Answer 8

Size of retailer (large vs. small)
Online vs In-store

Question 9

6Ps of Retailing (aka The Retail Mix)

Answer 9

Product mix  Quantity (Breadth & Depth) + Private labels
Price  Price range + Price matching + Loyalty
Promotion  Pull (flyers) +Push (salespeople) + Cooperative advertising
Place  Retail gravitational models
Presentation
Personnel

Question 10

Omni-channel retailing

Answer 10

A strategic approach that involves providing retail customers a seamless experience across all channels (or touchpoints) of distribution, including physical, online, mobile, and telephone, among others.

Question 11

Challenges in Omnichannel Retailing

Answer 11

Privacy issues because providing an omnichannel experience requires tracking customers
Pricing issues because firms end up charging different prices to customers depending on the channel of ordering/buying (e.g., online vs. in-store)
Inventory management and supply chain issues
Customer relationship management issues – How consistent is customer experience across different touchpoints?
Brand image consistency challenges