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Chapter 18. RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition. Establishing and Maintaining A Retail Image. BERMAN EVANS. Chapter Objectives. To show the importance of communicating with customers and examine the concept of retail image
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Chapter 18 RETAIL MANAGEMENT: A STRATEGIC APPROACH, 9th Edition Establishing and Maintaining A Retail Image BERMAN EVANS
Chapter Objectives • To show the importance of communicating with customers and examine the concept of retail image • To describe how a retail store image is related to the atmosphere it creates via its exterior, general interior, layout, and displays, and to look at the special case of non-store atmospherics • To discuss ways of encouraging customers to spend more time shopping • To consider the impact of community relations on a retailer’s image
In 3 Seconds… • A shopper should be able to determine a store’s • Name • Line of trade • Claim to fame • Price position • Personality
Atmosphere • The psychological feeling a customer gets when visiting a retailer • Store retailer: atmosphere refers to store’s physical characteristics that project an image and draw customers • Nonstore retailer: atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, etc.
Visual Merchandising Proactive, integrated atmospherics approach to create a certain look, properly display products, stimulate shopping behavior, and enhance physical behavior
Exterior Planning • Storefront • Marquee • Store entrances • Display windows • Exterior building height • Surrounding stores and area • Parking facilities
Alternatives in Planning a Basic Storefront • Modular structure • Prefabricated structure • Prototype store • Recessed storefront • Unique building design
Store Entrances • How many entrances are needed? • What type of entrance is best? • How should the walkway be designed?
Figure 18.6 How a Store Entrance Can Generate Shopper Interest
Flooring Colors Lighting Scents Sounds Store fixtures Wall textures Temperature Aisle space Dressing facilities In-store transportation (elevator, escalator, stairs) Dead areas Personnel Merchandise Price levels Displays Technology Store cleanliness General Interior
Allocation of Floor Space • Selling space • Merchandise space • Personnel space • Customer space
Figure 18.8 How a Supermarket Uses a Straight (Gridiron) Traffic Pattern
Figure 18.9 How a Department Store Uses a Curving (Free-Flowing) Traffic Pattern
Grouping Types • Functional product groupings • Purchase motivation product groupings • Market segment product groupings • Storability product groupings
Advantages An efficient atmosphere is created More floor space is devoted to product displays People can shop quickly Inventory control and security are simplified Self-service is easy, thereby reducing labor costs Disadvantages Impersonal atmosphere More limited browsing by customers Rushed shopping behavior Straight Traffic Pattern
Advantages A friendly atmosphere Shoppers do not feel rushed People are encouraged to walk through in any direction Impulse or unplanned purchases are enhanced Disadvantages Possible customer confusion Wasted floor space Difficulties in inventory control Higher labor intensity Potential loitering Displays may cost more Curving Traffic Pattern
Model Stock Approach Determines floor space necessary to carry and display a proper merchandise assortment Sales-Productivity Ratio Assigns floor space on the basis of sales or profit per foot Approaches for Determining Space Needs
Interior (Point-of-Purchase) Displays • Assortment display • Theme-setting display • Ensemble display • Rack display • Case display • Cut case • Dump bin
Advantages Unlimited space to present product assortments, displays, and information Can be customized to the individual customer Can be modified frequently Can promote cross-merchandising and impulse purchasing Enables a shopper to enter and exit an online store in a matter of minutes Disadvantages Can be slow for dialup shoppers Can be too complex Cannot display three-dimensional aspects of products well Requires constant updating More likely to be exited without purchase Online Store Considerations
Figure 18.13 The Shopping Cart’s Role in an Enhanced Shopping Experience
Community-Oriented Actions • Make sure that stores are barrier-free for disabled shoppers • Show a concern for the environment by recycling trash and cleaning streets • Supporting charities and noting that support at the company Web site • Participating in anti-drug programs • Employing area residents • Running special sales for senior citizens and other groups • Sponsoring Little League and other youth activities • Cooperating with neighborhood planning groups • Donating money and/or equipment to schools • Carefully checking IDs for purchases with age minimums