Chapter 2 Flashcards by Jessa Maceren

3 segments on retail sector

Food products
Consumer goods
Durable consumer goods

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Finished products that satisfy their personal or household needs and wants

Consumer goods

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Also known as consumer durables, designed to last for an extended period

Durable consumer goods

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RT distribution of food and related products to consumers through various activities

Food products

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Set of retailing activities focused on selling products that can be continually utilized

Consumer goods

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RT activities that offer consumers durable goods such as household products that last longer

Durable consumer goods

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Retailers can operate both retail and ___________ ___________

Institutional markets
(E.g. Schools, hospitals)

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How long does durable goods last

Usually 3 years

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Stores, often found within malls or commercial areas selling discounted merchandise, including overruns, seconds, from various fashion brands.

Factory outlets

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Refers to a traditional store where customers can buy products.

Located in main street or malls

Fixed location

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______________________ Business operates from a specific, stationery physical store like a brick and mortar shop or a mall store rathe than mobile or online only operation

Fixed location retail

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Large stores offering a WIDE VARIETY of products, including groceries, clothing and electronics

Offer both Food and non food items

Hypermarkets

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Example of hyper markets

Puregold, sm hypermarket, super 8

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A self-service shop offering a wide variety of food, beverages, and house hold items, organized into sections

Super market

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The focus on food and other household items

Usually smaller and more convenient

Super market

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Type of retail store that focuses on food items, off brand products at LOWER PRICES compared to super markets

DISCOUNT STORES

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Refers to the good or products that a company buys and sells

Merchandise

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Encompasses sales generated by unregistered or unlicensed retailers, street hawkers or open market stalls

Informal retailers

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They are often called pop ups

Common and allowing businesses to test ideas, reach new audiences or offer exclusive experiences in a limited time and location, such as malls, markets or event venues

TEMPORARY SHOPS

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Store that is not physically present, and the service is entirely automated

Vending machines

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A small retail establishment that sells basic but limited selection of everyday items like snacks, drinks, groceries and are often stay LONG HOURS FOR CUSTOMER CONVENIENCE

Convenience store

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Focuses on selling product or a narrow line of products offering a deep assortment within the category

Speciality store

e.g. florist, sporting goods store, or bookstore

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Focuses on both perishable and non perishable foods supplies and non -edible household items

Grocery store

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Also known as a dollar store

Sells wide array of goods including groceries, but also APPAREL, TOYS, HOUSEHOLD GOODS AT DISCOUNTED PRICES

Variety store

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_____ and ____ are smaller version of Hypermarket and supermarket

Variety and grocery stores

Small, family owned convenience store that sells everyday items on the Philippines

Sari-Sari store

Sells goods or services to the public WITHOUT A PERMANENT STRUCTURE Also known as Peddlers

Street vendors

Refers to the foods or other items sold by a grocer or in a grocery store

Groceries

______ are like grocery stores of other countries

SSS

Retail shop dealing with fashionable clothing or accessories stand alone formats or renting spaces

Boutique

Specializes in preparation, and sale of medications and related healthcare products

Pharmacy

The total money spent on final goods and services by individuals and households for personal use & enjoyment in an economy

Consumer spending

Multichannel retailing includes

Physical store Mobile Website

Businesses must effectively analyze consumer data. _______ is crucial for understanding customer and offering the right products.

Market intelligence

By closely monitoring data, ________________________________ can adapt marketing strategies and provide a personalized customer experience.

buying and selling habits

To succeed in the digital age, Businesses must learn to check and understand _____________

CONSUMER BEHAVIORS

Growing in popularity converting regular to loyal customers As they boost sales by increasing retention, driving repeat business, and encouraging higher spending. They also help with word-of-mouth marketing and attracting new customers

Loyalty program

Remains a key retail trend post-COVID, offering convenience and a wide range of options for consumers

Online shopping

ONLINE SHOPPING also provides retail workers with __________, boosting productivity and profit margins

flexibility

Through online shopping, Retailers can track _____________ to tailor marketing strategies, improve customer satisfaction, and increase conversions.

consumer behavior

What does online strategy help with stores?

Gain competitive edge and also reach international customers

Consumers are increasingly aware of the environmental and social impact of their purchases, pushing brands for transparency and retailers to adopt sustainable practices

Sustainability

Consumers are increasingly aware of the environmental and social impacts of their purchases, leading to a growing demand for sustainable products and practices, and a

willingness to pay more for them

form of advertising that allows brands to promote their products directly within a retailer's owned (on-site) properties and paid (off-site) media, using customer data to connect with consumers at the point of purchase or choice

Retail media

emerging as a new digital advertising channel, with giants like Amazon and Walmart exploring its potential to boost revenue, reach new audiences, and diversify income streams.

Retail media

refers to the channels or tools used to transmit information,(print, broadcast, internet

MEDIA

Protecting consumers’ data and privacy has become a top priority due to increasing cyberattacks, particularly in the retail sector. There are also growing concerns about the collection and utilization of consumer data by social media platforms and websites.

7) Emphasis on Consumer Privacy and Data Protection

To apply and protect consumer privacy, _________________, collect only necessary data, implement robust security measures, and ensure data is handled transparently and ethically. Ex: providing access codes for security

retail businesses should establish clear privacy policies

In the future, it is expected that hybrid shopping channels, which combine physical and digital experiences, will become more prevalent. 75% of consumers in the United States currently engage in omnichannel activities, such as researching products and making purchases both online and in physical stores.

Hybrid shopping

Retailers must incorporate new payment channels, such as layaway plans or buy now, pay later plans, in addition to credit cards to meet consumers’ expectations.

Payment flexibility

The increase in social commerce can be attributed to TikTok, and Gen Z users play a significant role in driving this growth. It is predicted that in the future, there will be an additional 10 million social buyers on platforms.

10) TikTok and Gen Z Will Significantly Impact Social Commerce

Personalization involves tailoring services, products, or experiences to meet the specific needs, preferences, and behaviors of individual customers or users. This can lead to greater influence over customers’ purchasing decisions, higher levels of engagement, increased customer loyalty, boosted sales, and ultimately more revenue.

Personalization is still king

Delivers personalized offers and recommendations based on purchase history through its app, and remembers customers' favorite drinks and preferences.

Starbucks

Suggests films and TV shows based on viewing history and even personalizes the film covers to highlight actors or actresses the user is familiar with.

Netflix

Creates personalized playlists (like "Discover Weekly") and recommends podcasts based on listening history.

Spotify

To improve customer experiences, businesses should offer 24/7 support. Exceptional customer service alone is no longer sufficient as customers expect to be able to reach out to businesses at any time and from any location.

Round the clock customer support

Two global brands who are exploring and identifying ways to reshape the retail industry’s future through the metaverse.

Nike and Gucci

In the retail industry, the metaverse refers to the integration of virtual reality (VR), augmented reality (AR), and other immersive technologies to create virtual stores, allow customers to explore products virtually, and offer interactive shopping experiences. The metaverse is expected to have an impact on the future of the retail industry. About 110 million people are predicted to use AR every month.

Growing popularity of the metaverse

With the rise of automation, there is an increasing demand for businesses to upskill workforce. This means providing them with dynamic learning opportunities that can equip them with the necessary skills for their job. This, in turn, will enable the workforce to stay agile and up-to-date on the latest technology, tools, and processes in the retail industry.

Empowering the work force

Empowering the workforce means granting employees the authority, resources, and support to make decisions and take ownership of their work,_________,________-,____________

leading to increased engagement, productivity, and innovation.

involves providing clear and open information about shipping processes, including costs, delivery timeframes, and tracking details

Shipping transparency

involves businesses selling goods and services to consumers via the internet, a digital form of retail that complements or replaces traditional brick-and-mortar stores.

E-commerce retail or online shopping

is vital for its cost-effectiveness and convenience, allowing customers to compare prices easily.

E-commerce

essential for stores the same as a physical storefront.

Websites

An online business model that uses a smartphone app to sell products directly, bypassing the need for a website. While similar to e-commerce, retailers usually combine mobile with other sales channels. Many now merge in-store and online options for customer convenience.

Mobile retail

While not prevalent as in other countries, there are some independent retailers that specialize in buying and selling discounted merchandise from manufacturers or other retailers.

Independent off-price retailers

Chapter 2 Flashcards

(66 cards)