Quiz 5: Retail Institutions by Store-Based Strategy
Destination retailer: • In this, the consumers view the organization as distinctive enough to become loyal to it and go out of their way to acquire it • Customers are attracted to this retailer due to the best services provided to them such as eloquent ambience, fair pricing and availability of variety of products Small shoe storeowner is a destination retailer: The shoe owner could be a destination retailer when he applies following strategies: • The small storeowner could be distinctive enough to cause shoppers to go out of their way • The shoe owner should sell premium brand shoes available in all sizes • Employing highly trained or experienced personnel who are enthusiastic and understand the needs of customers • Providing better service for the goods that were warranted • Maintaining the best quality products to make the customer delight
Wheel of retailing: • This theory explains the development of retail institution that takes place when innovators, including giant business houses, enter the retail background • This theory explains how these retailers approach, create brand value, and confine market share Principles: • There are price-sensitive buyers who will do business with customer services, broad selections and best locations for cheap prices • Price sensitive buyers are not loyal and they change retailers repeatedly • New organizations are often able to have less operating expenses compared with existing companies • The retailers typically move the wheel to increase sales, make a wider target market, and improve their changes Applicability: This theory helps retailers to be successful in these days. The basic principle behind this theory is, to make the consumers know about the product at the very initial stage and later keep on adding the benefits with increase in the price as well. Due to heavy competition and the entry of new products into the market, the wheel of retailing helps the companies to reach more consumers and earn profits. The retailers improve facilities and become susceptible to new innovators with lower cost structures.
High-end retail strategy: • High-end retail stores have the most attractive objectives for economic development • These stores bring high income buyers from outside the locality and take the required steps to prevent outflow by cheering similar mobile shoppers who live in the area to live in this locality High-end retail strategy mix: The elements in the high-end retail strategy are as follows: • Location • Product • Service • Promotion • Price Location: The toy store should be established in the business districts. It is necessary to concentrate more on the markets where the parents are well educated and could afford to buy the high price toys for their kids. Product: The toy store should take good branded toys. Most people show interest in buying the branded goods which they believe as the quality ones. So, the kind of product placed in the store results in the success of the business. Service: The store should have trained technicians for assembling the goods. The quick response to replace or exchange the damaged goods also shows how the customers are treated. These kind of simple responses make a lot of difference for the business. Promotion: The store should promote them through extensive advertising. Depending on the kind of products and the size of the market, the advertising should be planned and promoted. The targeted market and customers are to be considered the most. Price: The store should sell the products as per the list price. The price that is marked for a product should not seem to be very high, at the same time too low. As the high cost makes the customer to take back his purchase decision, whereas the low cost resembles the poor quality of a product.