Question

1. Name and explain different kind of retailers.

2. Should a retailer try to lengthen the amount of time people spend in its stores? Why or why not?

3. Why do chain retailers tend to do better than independents?

4. Many people see the digital revolution as being bad for traditional retailers, but what advantages have there been for traditional retailers in the digital revolution?

5. Case study Zara – questions 1 and 2 – page 354

don't need to do Q5 do the rest please

Answer 1

1. Retailers:

Meanings

A person or business who sells goods to public in small quantities for their own consumption and not for resale

Retailor is the final channel of distribution

The customer to the retailer is always the end-user

It acts as a marketing tool for brands and support tool for customers to exchange and communicate important information

The different kinds of retailers are:

1. Store retailers [Brick and Mortar]

a. Departmental stores wide product mix including hardware, clothing, appliances, etc

b. Speciality stores

c. Drug stores

d. Supermarkets- large self-service stores with central checkout facilities

e. discount retailers- offer heavy discounts by a focus on price as their main sales appeal

f. Malls and shopping centres-provide customers with wide range of products

2. Non-Store retailers

a. Direct selling –door to door

b. Automated vending-vending machines

c. Kiosk

d. Special event

e. Catalog

f. Pop-up

3. Corporate retailers

a. Chain stores-are opened at multiple locations due to availability of financial resources and hence attract many customers due to convenient locations

b. Franchisee

c. Merchandising conglomerates

4. Internet retailers [online]-do not have physical retail outlet and serve larger markets

5. Service retailers

6. Warehouse retailers

2.            A retailer is in direct contact with the customer. He is expected to deliver outstanding services to consumers. Customer satisfaction is the key the success for the retailer.

If the retailer lengthens the amount of time people spend in his stores, there would be following pros

a. The retailer would be able to build a strong relationship with the customer which in turn may boost revenue

b. Retailer would be able to gather more information about the likes and dislikes of customers regarding different products and can maintain inventory to boost profits

c. The retailer can survey about the new product by providing samples to the customers and ask their feedback

d. Retailer could try his sales tactics and sell more products to the customers

If the retailer lengthens the amount of time people spend in his stores, there would be following cons

a. A smart customer who though does not wish to buy a product could enquire more and more about the product and will divert focus from new customers

b. customer may bargain about the price more

c. There are chances of hampering relationship due to mis-communications

d. The customer may occupy un-necessary space to let other worthy customers in

e. Customer may divert un-necessary attention of other customers

3. A chain is a group of similar retail shops that sells the same type of goods. All the stores are under control of a head office.

Advantages

a. Chain store mainly specialised in a certain product and offers different varieties of same

b. The stores are present in multiple locations of same or different cities which can grap huge customer base due to its convenient localities

c. The floor space required is much less than any departmental store or super market

d. Due to central control the financial resources are easy to manage. Advertising and other costs being centralised there would be economy in the same

e. Stock-out chances are really less as other branch may fulfil the same

f. Uniformity in prices

4. Advantages for traditional retailers in the digital revolution

Digital revolution in retail market is a great advantage to retailers who can reach consumers and conduct business without brick and mortar store

a. The largest cost of traditional retailer is lease rent or investment in land and building for operating a store which are negligible in digital revolution

b. The e-commerce business can increase its sales and profit faster as it could be open 24*7 without any time boundary

c. It helps to attract customer which are not limited to particular locality or city but worldwide without any additional costs

d. The e-commerce business can bet on prices as the administrative costs decrease

e. A wider platform with wide range of products can be created without any additional costs more and more diverse products can be added in the kitty