MAR3231 FSU Hopkins Exam 1 Questions with well explained answers

Retailing - Encompasses the business activities involved in selling goods and services to consumers for their personal, family, or household use. It includes every sale to the final consumer. OR How firms deliver products to end users. Ideal Retailer - - People person - Flexible - Be decisive - Have analytical skills - Have stamina Durable good stores - Motor vehicles & parts dealers, furniture, electronics and appliance stores, hardware stores - Make up 30% of US retail store sales Nondurable goods/services stores - General merchandise stores, food & beverage stores, health & personal care, gas stations, book & music shops, eating & drinking places - Make up 70% if US retail store salesIssues in Retailing - - How can we best serve our customers while earning a fair profit? (race to the bottom) - How can we stand out in a highly competitive environment where consumers have so many choices? (Paradox of Choice) - How can we grow our business while retaining core loyal customers? - Communicating with millennials Paradox of Choice - - Less is more - Too much choice is stressful - 30% bought jam w/ less choices - 3% bought jam w/ 24 choices Core Customer - - The customer that is targeted by the store - Is at the center of retailing activities Millennials - - want to own less and lease more - do research online before purchasing - "real time" customers - wait until the last minute to shop- price matching: see a product in-store, then go buy it on Amazon The Retail Philosophy - Customer Value - Retailers can best address these questions by: - fully understanding and applying the basic principles of retailing - maintaining a focused retail strategy Examples: - Godiva - AMEX - Tiffany & Co. (customer places value on these brands) The 10 largest (per sales) Retailers in the United States (2016) - 1. Wal-mart 2. Kroger 3. Costco 4. Home Depot 5. Walgreens 6. Target 7. CVS 8. Amazon 9. Albertsons 10. Lowe's