chapter 9 (unit 2)

Question 1

QUIZ: which of the following is not an industry term that describes the variations of products offered?
* product width
* product depth
* product reach
* product assortment

Answer 1

product reach

Question 2

QUIZ: what are all the details inside the retail store’s physical environment that influence consumer behavior?
* visual merchandising
* retail atmospherics
* store layout
* visual atmospherics

Answer 2

retail atmospherics

Question 3

QUIZ: true or false - different store layouts cannot be combined or used together

true or false

Answer 3

false

Question 4

QUIZ: which of the following was not included in types of retail stores discussed in this chapter?
* big-box store
* supermarket
* department store
* all of these were included in the chapter as types of retail stores

Answer 4

all of these

Question 5

QUIZ: what DOES still draw consumers to a physical store?
* experience
* persuasion
* public relations
* square footage

Answer 5

experience

Question 6

QUIZ: what is also called the merchandise mix?
* product depth
* product assortment
* product width
* product line

Answer 6

product assortment

Question 7

QUIZ: what represents the range of choice offered to the consumer within a particular classification of merchandise?
* product line
* product depth
* product assortment
* product width

Answer 7

product assortment

Question 8

QUIZ: what type of retail store is divided up into departments of similar types of product lines?
* big-box stores
* supermarkets
* speciality stores
* department stores

Answer 8

department stores

Question 9

QUIZ: types of retail stores are often distinguished by their __
* product assortment
* store size
* neither product assortment or store size
* both product assortment and store size

Answer 9

both product assortment and store size

Question 10

QUIZ: what is it called when retailers make different purchasing options available to customers?
* multi-purchase
* omni-channel
* purchase options
* none

Answer 10

omni-channel

Question 11

brick and mortar stores

Answer 11

physical storefronts

Question 12

retail and retail locations

Answer 12

Is the sale of goods or services to a final consumers (as opposed to the sale of goods to another business)

Department stores
Restaurants
Gas stations
Car dealerships

Question 13

key pieces of retail

Answer 13

Retail is made up of three pieces that all fit together
We’ll be focusing on physical storefronts and a retailers products or merchandise in this chapter

Question 14

product line

Answer 14

A product line is a group of related products marketed and sold by the same company under the same brand.

Question 15

product width

Answer 15

Product width (also called product breadth) is the number or variety of product lines that a store offers.

Question 16

product depth

Answer 16

Product depth is the number of individual products in a product line. It represents all of the variations of products in a product line, including each color, flavor, or size of product.

Question 17

product assortment

Answer 17

Product assortment, also called merchandise mix, represents the range of choice offered to the consumer within a particular classification of merchandise. It is the combination of the product width and product depth that a store carries.

remember that this is also called merchandise mix

Question 18

apple store product assortment

Answer 18

merchandise mix

front left to right is the product lines (tv, watches, phones computers)
then below that is the product types (apple tv, apple watch, iphone, macbooks)
then bwlo that is the product (4k 32 gb, series 7, iphone 14, macbook pro)

Question 19

(types of retail stores) convenience stores

Answer 19

Small stores often located in or near residential areas
Product lines are often limited, with the store having wide product width but not depth
Prices on goods are often higher than at a supermarket or department stores.

Example: Quiktrip

Question 20

(types of retail stores) speciality stores

Answer 20

feature narrow and deep product lines (narrow product areas). These stores selectively sell goods related to a particular product area or brand.

EX: Lane Bryant (one brand, plus-size clothing), Petco

Question 21

(types of retail stores) discount store

Answer 21

Offers product at a discount, often due to overruns (extra inventory), factory buyouts, previous-season items or product damage. Outlet stores often represent one brand or retail store and offer discounted items directly from that company or factory. Stores are occasionally grouped together in outlet malls.

EX: Nordstrom Rack, TJ Maxx

Question 22

(types of retail store) department stores

Answer 22

A department store offers a wide assortment of product lines (wide product breadth) and is divided into departments of similar types of product lines. These departments often have separate managers, registers, product buyers, and promotions.

EX: Dillard’s, Macy’s

Question 23

(types of retail stores) supermarkets

Answer 23

A supermarket is a medium to large grocery store offering a large selection of grocery items, sometimes at discounted prices. Supermarkets often sell basic household items as well.

Example: Kroger, Aldi

Question 24

(types of retail stores) big-box stores aka supercenters

Answer 24

According to Wikipedia, big-box store is a large retail store and is often part of a chain. In the United States, these tend to range from 50,000 to 200,000 square feet and carry large amounts of merchandise. The two subtypes of big-box stores are general merchandise (such as Target and Walmart) and specialty stores (such as Lowe’s), which offer more specific product assortments.

Example: Target, Lowe’s

Question 25

shifting consumer behavior

Answer 25

Rise in online sales Mobile shopping increase Decrease in mall shopping Decrease in sales in department stores and other vulnerable stores Increase in experience purchases post covid

Question 26

online resistant

Answer 26

Note that some types of retail stores are considered “online resistant,” meaning they are not affected as much by the increase in online shopping. The types of stores that are the least resistant to online sales substitutes, and therefore most at risk for decreased sales, include department stores, bookstores, toy stores, electronic stores, and music stores.

Question 27

how to adapt to shifting consumer behavior

Answer 27

Marketing retail in experience What draws customers to a physical store? - An experience - Customers are looking for something in the store that would be a value added above shopping online

Question 28

retail atmospherics

Answer 28

A store differentiates itself through its retail atmospherics, which includes all of the details inside the retail store’s physical environment that influences customer behavior. It is used to not just differentiate a store environment but also to reinforce branding, to increase traffic, and to increase customer spending.

Question 29

visual merchandising

Answer 29

The practice in the retail industry of developing floor plans and three-dimensional displays in order to maximize sales Closely related to retail atmospherics is visual merchandising, the practice in the retail industry of developing floor plans and three-dimensional displays in order to maximize sales. Many companies have positions available specifically for visual merchandising, and some stores even employ visual merchandisers for each individual location.

Question 30

how to adapt to shifting consumer behavior (explained in greater detail)

Answer 30

- making retail an experience - adding an experience - curating a product assortment (and going local) - offering online options (going omni-channel) - adding augmented reality and other technology

Question 31

omni-channel

Answer 31

when retailers make purchasing options available to consumers; the goal is to essentially be everywhere

Question 32

store layout

Answer 32

is the design of a store’s floor space and fixtures to facilitate the flow of traffic and shopping. There are several common types of store layouts, and they each work well in different store, merchandise, and purchasing situations.

Question 33

(types of store layout) grid layout

Answer 33

- is common in supermarkets and big-box stores. It features long, parallel aisles that are perpendicular to the walls. - Some grid layouts have shelving so tall that customers cannot see to the next aisle. This layout works well for displaying and organizing high volumes of merchandise - The predictability of this layout can be both an upside and a downside. Most customers are familiar with the layout and are comfortable strolling up and down the aisles BUT the layout may not lend itself to the creative retail “experience” that some stores hope to create. - This layout can also be a downside if the products are not organized well or if there is not proper signage; in such cases, customers would have to walk up and down all of the aisles to find products

Question 34

(types of store layout) diagonal layout

Answer 34

- The diagonal layout is very similar to the grid layout except that the aisles are set diagonally to the store walls instead of perpendicularly. - While the pluses and minuses are similar to the grid layout, the diagonal layout also has the upside of the store employees being able to easily view the merchandise. - The height and placement of fixtures allows both customers to easily see all the merchandise and employees to see customers shopping in the store. - You can see how this grocery store uses diagonal shelving for their refrigerated section. This part of the store organizes items such as fresh produce while still maintaining an open feel.

Question 35

(types of store layout) racetrack (loop) layout

Answer 35

- it takes customers on a loop around the store. There is a clearly defined aisle and flow of traffic. This does take customers on a predictable journey through the store, and customers can see a majority of the merchandise. - this may not be well suited in situations of high traffic, where the main racetrack loop through the store would get overcrowded. - racetrack layout where customers must follow a required path, customers may not appreciate being forced through the entire store when they only wish to get one desired item. EX: ikea

Question 36

(types of store layout) spine layout

Answer 36

- The spine layout features one main aisle from the entry to the back of the store, with sections of merchandise branching out from that main aisle. - This layout is common in department stores. - This layout gives a clear path through the store but may not encourage customers to explore all of the merchandise.

Question 37

(types of store layout) free-flow layout

Answer 37

- The free-flow layout doesn’t have a clearly defined path through the store, therefore allowing a free flow of traffic around the merchandise. - encourages customers to wander about the store at their own pace. Although this layout may not be ideal for efficient display of large volumes of merchandise, it can work well for stores wishing to create a retail store experience. - This type of layout works well for small to medium stores and stores that sell higher-end merchandise (as they can display a lower volume of merchandise on the floor). Too much merchandise on the floor or too many displays with this layout can feel crowded to the customer. - good for : boutiques and high-end clothing stores often use this layout as these store types display smaller amounts of merchandise - not good for : big-box stores. The space would likely be crowded, overwhelming, and confusing to customers.

Question 38

(types of store layout) combination layout

Answer 38

- It’s important to note that many stores implement a combination of these common layouts. - For instance, the free-flow layout is also commonly used in conjunction with other layouts, such as the spine layout. - A store might have an overall spine layout but free-flow layout in the areas branching off from the spine walkway.

Question 39

layout interaction psychology

Answer 39

Be aware of how people move throughout the store (people turn right) Consider the flow of traffic for signage Add a “decompression” zone at the front of the store Create sufficient aisle and shopping space Create speed bumps for customers to slow down Place impulse items near the checkout

Question 40

other atmospheric elements

Answer 40

Lighting Sounds Smells Colors - The brand’s colors should be used in the store to reinforce the brand recognition and identity. Signage

Question 41

other atmospheric elements - signage

Answer 41

Find a color palette and stick with it. Use a big enough font so no one has to squint to read it. Keep the word count short. Limit your use of the word No. For example, instead of saying, “No Refunds after 14 days,” say, "Refunds available within 14 days.” Use analogies. For example, declare_,_ “Like A Shot of Espresso For Your Skin!” Test signage for clarity by using your desktop printer before committing to having them professionally printed.

Question 42

resources for creating the space for your store

Answer 42

- deciding on fixtures Different types of merchandise displays are able to store different amounts of products and are good for different uses. high shelving, round tables, square table - drawing the layout - the planogram (important) A planogram is a guide for displaying retail products on shelves and throughout the store. A marketer can use a planogram to help maximize space, to display items in a similar way throughout a chain of stores, and to guide employees on how to display merchandise.