FSU MAR 3231 Exam 2 Prep – Consumer Lifestyles, Retail Strategies & Marketing Concepts Rationales Graded A+ Latest Updated 2026

FSU MAR 3231 Exam 2 Prep – Consumer Lifestyles, Retail Strategies & Marketing Concepts Rationales Graded A+ Latest Updated 2026 Retail Ownership Classifications: • Independent • Chain • Franchise • Leased Department Independent Retailers • 2.2 million independent retailers in US • Account for 1/3rd of total store sales • 70% of independents operated by owners and their families • Why so many? Ease of entry Advantages of Independent Retailers • Flexibility in formats, locations, and strategy • Control over investment costs, personnel functions, and strategies • Easier to manage personal image • Consistency and independence Disadvantages of Independent Retailers • Lack of bargaining power • Labor-intensive operations • Overdependence on owner Chain Retailers • Operate multiple outlets under common ownership • Engage in some level of centralized/coordinated purchasing and decision making Chain a parent company owns each location Franchise different stores or branches are owned by separate individuals who are solely responsible for daily operations Advantages of Chain Retailers • Bargaining power • Efficiency maintained by computerization, warehouse sharing, and other functions • Defined management philosophy Disadvantages of Chain Retailers • Limited flexibility • Higher investment costs • Complex managerial control • Limited independence among personnel • Excessive standardization due to extreme concern for bargaining power Retail Franchising • A contractual agreement between a franchisor and a retail franchisee • Franchisee pays an initial fee and a monthly percentage of gross sales in exchange for the exclusive rights to sell goods and services in an area Retail Franchising Advantages • Low capital required • Acquisition of well-known names • Operating/management skills taught • Cooperative marketing possible • Exclusive rights Retail Franchising Disadvantages • Over-saturation could occur • Franchisors may overstate potential • Contractual confinement • Royalties are based on sales, not profits Leased Departments • A department/space in a retail store that is rented to an outside party • The outside party (lessee) is responsible for all aspects of its business and pays a percentage of sales as rent • The retail store sets operating restrictions to ensure consistency and coordination □ Ex. Bloomingdale's, Walmart