Retail Management Assignment Tranky Ho
1. When a consumer shops at an upscale furniture store, what factors determine whether the consumer feels that he or she got a fair value? How does the perception of value differ when that same consumer shops at a discount furniture store?
• A retailer must ensure that all of its strategic elements are in place. • For the shopper segment to which a particular retailer appeals, the total retail experience must be aimed at fulfilling customer expectations-and it must be consistent with those experience. • Among the factors that comprise a customer service strategy are store hours, packing, shopper friendliness of the layout, credit acceptance, salespeople, amenities such as gift wrapping, restrooms, employee politeness, etc.
2. Comment on this statement: "Each segment has its own values equation and shops accordingly. Understanding what drives different groups is critical in creating an experience and product offering that satisfies their individual value equations."
As to properly develop a strategy mix, a retailer must identify the characteristics, needs, and attitudes of consumers; understand how consumer make decisions; and enact the proper target market plan. It must study environmental influences, too. Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
3. Do you think that non-store retailing will continue to grow faster than store-based retailing? Explain your answer.
Non-store retailing will continue to go faster then store-based because: • Reduced costs
• Lower price
• Large geographic coverage
• Convenient to customers
• Ability to pinpoint customer segments
• Ability to eliminate sales tax for some
• Ability to supplement regular business without additional outlets. But it has some limitations:
• Cost may be underestimated
• Products can not be examined prior to purchase
• Response rates to catalogs under 10%
• Clutter exists
• Industry reputation sometimes negative
4. Why do retailers frequently underestimate the financial and time requirements of a business?
Prepare a business plan
• First and foremost, it will define and focus retailer objective using appropriate information and analysis. • Retailer can use it as a selling tool in dealing with important relationships including there lenders, investors and banks. • There business plan can uncover omissions and/or weaknesses in retailer planning process. • Retailer can use the plan to solicit opinions and advice from people, including those in there intended field of business, who will freely give they invaluable advice. Too often, entrepreneurs forge ahead ("My Way!") without the benefit of input from experts who could save them a great deal of wear and tear. "My Way" is a great song, but in practice can result in unnecessary hardships. DO'S
1. Prepare a complete business plan for any business you are considering. 2. Use the business plan templates furnished in each session. 3. Complete sections of your business plan as you proceed through the course. 4. Research (use search engines) to find business plans that are available on the Internet. 5. Package your business plan in an attractive kit as a selling tool. 6. Submit your business plan to experts in your intended business for their advice. 7. Spell out your strategies on how you intend to handle...
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