RMG 200 Flashcards

Question

# chapter 2 NON STORE RETAIL FORMATS | catelouge + electronnic retailing

Answer 1

- NON store retail formarts Electronic retailing is a retail format in which retailers communicate with customers and offer products and services for asle over the internet - Catelouges - Personlized information about products and services CATALOUGE Acces and convenience for consumers Retailers use multi-channel strategy by integrating the nterent - Many merchandise categories from general to very specific - Succes factors (cunsomer data, visual appeal, personalized servcoes) ELECTRONIC RETAILING Broader and deeper assortments - More timely information for evaluating merchandise - Personalization

Answer 2

DIRECT SELLING Face to face interaction Types Party plan system - social event hosted By sales person Multilevel system - master distributors recruit people who sell and recruit others to do the same Pyramid scheme - illegal activity that only sells to other dsitrubtiors rather than end users TELEVESION HOME SHOPPING - T-commerce or teleshopping - Cable channels detiecated to shopping - Informercials - Direct response advertising

Answer 3

wholesale club, supermarket, category specialist, depertment store, optical center, retsurant, airplane, banks , univeristy 4 difference between services and merchandise retailers Intangible - service cannot be seen, smelled, heard, or touched prior to purchase (university services Inseperaple - a service is performed and consumed at the same time (tanning salon) Perishable - a service cannot be stored like a physical good, if it is not delivered it islike it does not exist ( a concert) Variable - each time a service performed in a different way (waiter)

Answer 4

Definition - refers to the different ways in which a business can sell its products or service BRICK AND MOTAR STORE Stores offer a number of benefits to customers that they cant get shopping though catelouge or online - Personal service, cash payment, immediate gratification, entertainment social experience MULTICHANNEL RETAILERS Sells merchandise or services through more than one channel

Answer 5

M-commerce + S-commerce + omni channel Purchase of products through mobile devices, social commercial is the use of social media platforms like facebook to market and sell products and services - Retailers developed apps that enable mobile dvcies users to engage in shopping - Mobile is a natural ft for canadian consumer as canadians are adopting mobile technology - - Many retailers are currently focusing on optimizing their websites for mobile devices Omni channel Requires seamless inetergartion between channels so that shoppers can shop any way they want with same results - An integrated experience that melds advantages of physical shopping with information rich experience of online shopping Canadian tire - omni channel - Pick up towers ( buy online, pick up in stors) - Electronic labels - Personlized marketing - AI forecasting

Answer 6

TYPES OF RETAIL OWNERSHIP Independent single store, corporate retal chains, franchise How to succeed in franchising SMEs - Learn from past embrace you” why” - Be custom cenetric ( better service) - Create an experience - Rethink marketing - Cut costs - Partnerships

Answer 7

WHY DO CONSUMERS BUY + BUYING PROCESS - To reinforce self-concepts, to maintain their lifestyles, to become part of a group or gain acceptance - YOU CAN NOT BE ALL THINGS TO ALL CUSTOMERS - Information about buying process is used to create market segment Influence on buyer behaviour Economic - humans are rational decision markers who want to take maxim utility out of fixed/ minimum price Physcology - according to psychology any human activity is directed towards meeting certain needs (maslows hierarchy) Sociology - effect of reference group, society role in society

Answer 8

Initiator - individual who determines that some need or want is not being fulfilled and authorized by a purchase to rectify the situation Gate keeper Influences the familys processing of information the gathekeeper has te greatest knowledge in acquiring and evaluating the information Influencer Person who by some intentional or unintentional word or action, influences the buying decision atual purchase an dor use of the product or service Decider The person or persons who actually determines which product or service will be chosen Buyer An individual who actually makes the purchase transaction User- Person most directly involved in the use or consumption of purchased product

Answer 9

Cultural ( culture) Social ( reference groups, family, roles & status) Personal ( age & life cycle stage, occupations, economic lifestyle, personality & self concept) Psychological (motivation, perception, learning)

Answer 10

Self concept and life style Who someone sees themself 4 self concepts Actual self ( reflective of hoe the individual actually is) Ideal self ( how the individual would like to be) Private self ( intentionally hidden from others) Public self (self that is shown to the public) Perceived risk Uncertainty that consumers face when the can not see the consequences of their purchase Types of risk Functional risk ( the product will not perform well) Physical risk ( risk the product may pose) Social risk ( poor product may cause social embaressemtn) Time risk ( time spent searching for product is waste if product does not perform wel) Perception of risk Consumers perception of risk varies depending on the person produc situation ot culture

Answer 11

Needs regictintion The buying proces starts when consumers recigonxe they have an unsatisfied needs Types of needs Utilitarian - when consumers go shopping to accomplish a specific task Hedonic - when consumers go shopping for pleasure ( stimulation, social experience, learning new trends, status and power, self reward) Stimulation needs recigintion Customers need tor ealize there need before they are motivated to shop Advertising, publicity, special events or communication

Answer 12

Once customers idenitfy the need may seek information about retailers Sources of information - Internal sources of information ( customers memory, such as names, images and past experiences with different stores) - External sources of information ( info provided by media and other people) Reducing information search - Retailers objective at the info stage of the buying process is it o limit customers search to its store - Each retail mix can be used for this

Answer 13

Evaluation of alternatives - the multiattribute attitude model Provides a useful way to summarize how customers use the information they have and collect about alternative products Based on notion customers see a retailer, a product, a service as a collection of attributes is designed to predict a customers evaluations of a product service or retailer ( performance on relevant attributes, importance of attributes to the customer)

Answer 14

Must do market research - Alternative retails the customers consider - Characteristics or benefits that customers consider when evaluating and choosing a retailer - Customers ratings of each retailers performance on the characteristics - Importance weights that customers attach to each 4 methods to increase customers will select their store - An increase belif about the stores performance - Decrease the performance beliefs for competing stores in the consideration set - Increase customers importance weights adding a new benefit

Answer 15

4. Purchasing the merchandise or service All about converting positive evaluations into a purchase Making it easier - Reduce actual wait times by installing digital displays to entertain customers waiting - Reduce percivrd wait times by installing displays On website easy navigation - Self service checkouts 5. Post- purchase evaluation All about satisfaction How well a store product or service is - Loyalty - Competitive advantages

Answer 16

Extended problem solving - Customers devote considerable time and effort to analyzing their alternatives Limited problem solving - A purchase decision process involving moderate emount of effort anf time Habitual decision making - A purchase decision process involving little or no conscious effort - Brand loyalt ( customers like and consistently by a specific brand in a product category) - Retailer loyalty ( customers like and consistentiyly shop at the same retailers for particular products Factors influence the customers social environment Family - many purchase decisons are made for products that the entrie family will consume or use Reference groups- composed of two or more people whom a person uses as a basis of comparision for his or her belifs feelings and behaviours Canada multiculltrual market - visible minorities in canadas have grown threefold over the lst two decades

Answer 17

Inter group - a grou giving a gift to another group ( a gift from one family to another) Inter category - an individual giving a gift to a group or a group giving a gift to individual Intra group - a group giving a gift to itself or its members Interpersonal - an idnvidual giving a gift to another individual Intrapersonal - self gift

Answer 18

MARKET SEGMENT A group of customers whose needs are satisfied by the same retail mix because they have similar needs Criteria of viable market segment Actionability - the fundamental criteria for evaluting a retail market ( customers in the segment must have similar needs seek similar benefits) Indetfiability - retailers must be able to identify the customers in a target segment and it permits the retailer to determine the segment size and with whom the retailer should communicate when promoting its retail offering Accessibility - the ability of the retailer to deliver the appropriate retail mix the customer its targeted segment Size- a target segment must be large enough to support a unique retail mix

Answer 19

GEOGRAPHIC SEGEMENTATION Groups customers by where they live A retail marker can be segmented by country and b areras within a country such as provinces cities and neighbours Life style segmentation Method of segmenting a retail market based on consumers lifestyle How they spend their time and money What activities they purse

Answer 20

BUYING SITUATION SEGMENTATION - Method of segmenting a retail market baased on customer needs in a specific biying situation - The buying behaviour of customers with the same lifestyle can differ their buying attention - Group customers seeking similar benefits COMPOSITE SEGMENTATION - Use multiple variables to identify customers in their target marker - Benefits, lifestye

RMG 200 Flashcards

midterm study (44 cards)