Retail Management A Strategic Approach: Chapter 2

Front 1

Value

Back 1

embodied by the activities and processes that provide a given level of value for the consumer--from manufacturer, wholesaler, and retailer perspectives. From the customer's perspective it is the perception the shopper has of value chain.

Front 2

Value Chain

Back 2

Total bundle of benefits offered to consumers through a channel of distribution.

Front 3

What are the 3 aspects of value-orientated retail strategy? provide a brief description of each.

Back 3

Expected retail strategy- the minimum value chain elements a given customer segment (e.g., young woman) expect from a type of retailer
Augmented retail strategy- The extra elements of a value chain the differentiate one another
Potential Retail Strategy- value chain elements not yet adopted or perfected by competitors

Front 4

What are the 5 potential pitfalls associated with planning a value-orientated strategy?

Back 4

1)planning a value with just a price perspective.
2) providing value-enhancing services that no one wants to pay for.
3)Competing in the wrong value/price segment
4)Believing augmented elements alone create value
5)Paying Lip service to customer service.

Front 5

What can we do to prevent these pitfalls from accuring?

Back 5

Use a value oriented retailing checklist (figure 2-2 pg., 29)

Front 6

In relationship retailing, what are the four factors to keep in mind?

Back 6

customer base
customer service
customer satisfaction
loyalty programs/defection rates

Front 7

Core Customers

Back 7

a firms best customers. Customers that should be singled out

Front 8

Expected customer service

Back 8

the service level that customers want to receive from any retailer, such as basic employee courtesy

Front 9

Augmented Customer Service

Back 9

included the activities that enhance the shopping experience and give retailers a competitive advantage

Front 10

Employee Empowerment

Back 10

the ability for employees to have the discretion to do what they believe is necessary.

Front 11

revolving credit Limit

Back 11

allows a customer to charge items and be billed monthly on the basis of the outstanding cumulative balance

Front 12

option credit limit

Back 12

Form of of revolving account that allows partial payments. no interest is assessed if payed in full when due

Front 13

open credit limit

Back 13

Requires a consumer to pay his bill in full when due

Front 14

Customer satisfaction

Back 14

occurs when the value and customer service provided through a retailing experience meet or exceed consumer expectations.

Front 15

What is retail satisfaction comprised of

Back 15

Shopping system satisfaction
Buying satisfaction
consumer satisfaction

Front 16

Consumer Loyalty programs

Back 16

reward firms best customers, those with whom they want long-lasting relationships

Front 17

What are the 5 types of Reward programs from the customers prospective

Back 17

Economic Rewards
hedonistic rewards
social-relational rewards
informational rewards
functional reward

Front 18

Goods retailing

Back 18

focuses on the sale of tangible products

Front 19

Service retailing

Back 19

transactions in which consumers do not purchase or acquire ownership of tangible products

Front 20

What are the three basic types of service retailing? Provide brief explanation.

Back 20

Rented-good services- consumer rent or lease goods for specific period of time
Owned Good Services- Goods owned by consumers are repaired, improved or maintained.
Non-Goods Services- Intangible personal services are experienced by consumers rather than possessed

Front 21

What are the four unique aspects of service retailing?

Back 21

1)the intangibility of many services makes a consumer's choice of competitive offerings tougher than with goods.
2)the services provider and his or her service are sometimes inseparable
3)the perishability of many services prevents storage and increases risk
4)the human nature involved in many services makes them more variable

Front 22

Eithics

Back 22

acting in a trustworthy, fair, honest and respectful manner with each of its constituencies

Front 23

Social responsibility

Back 23

acting in the best interest to society

Front 24

Consumerism

Back 24

the activities of government, business and other organizations to protect people from practices infringing upon their rights as consumers. consumers have the right to safety, to be informed and to be heard.

Front 25

Americans with Disabilities Act-

Back 25

Mandates that persons with disabilities be given appropriate access to retailing facilities.