Physical Availability PDF

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Summary of the book by Byron sharp. In bulletpoints,...

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Physical Availability, Retailing and Shopping RETAILING: 

Kinds of retailers: 1. Department stores: E.g. David Jones  Product is laid out in separate departments like women’s, men’s, home furnishing, cosmetics etc.  Companies may operate ‘shops within shops’  The ‘shops’ pay rent as a percentage of takings to the host store 2. Supermarkets: E.g. Woolworths  Large, self-service stores  Carry a very wide range of consumer goods  They are typically located in suburban shopping strips or centres  They are also located in out-of-town retail parks  They are often the first with new customer initiatives such as loyalty cards or instore bakeries  Low prices based on large scale efficiency are hard for smaller independent stores to match 3. Discount sheds or ‘category killers’: E.g. Toys r us  These stores often stock bulky items like furniture and electrical goods  The term ‘category killer’ results from the tendency of some very specialist stores to put competing independent retailers out of business 4. Speciality shops: E.g. Sports girl or Carphone Warehouse  These are typically found in central business districts of cities or prime retail sites in town  Increasingly, these stores are a part of a branded chains 5. Convenience stores: E.g. 7-Eleven  These stores fill the gap between supermarkets and ‘traditional’ corner shops  Although independently owned convenience stores have tended to decline in number in the recent years  Major supermarkets operators have expanded into this area 6. Cash-and-carry warehouses  They usually offer cheaper groceries and durable goods to consumers  Or cater to traders and small retailers 7. Market traders:  They are significant outlets for low-value products  They have generally declined in importance in the recent years 8. Online Retailers: E.g. Amazon  Have no physical shops that interface with the public

GROWTH OF CHAINS:     

The 20th and 21st centuries have seen an increase in national chains of retailers There is also an increase in the trend of self –service This shows that the primary purpose of retailing is to reach customers, bring products and services to them, not to do much in the way of active selling Self-scanning in supermarkets is becoming common There are some shopping centres that only feature chain stores

HOW STORES COMPETE:        

Rivals are always try to out-do each other with new stress, better locations, improved store layouts and technology and extensive advertising Rival stores compete fairly much head-on against one another unless they are located physically far apart Stores at great mental and physical availability are visited by more shoppers and people find it more easier to repeat-purchase E.g. David jones which is the most upmarket store does not gain more loyalty than its rivals Kmart has the largest share, penetration and loyalty- which has a lot to do with it having more stores than its rivals David jones however, shares less of its customer base with Kmart and target This is mostly because David jones is more upmarket Basically, the point here is that a store’s location and number of locations a chain has a huge effect on how many shoppers a store attracts

EMPERICAL LAWS OF SHOPPING:    

IN THE PAST, shopper behaviour had not been studies extensively This has changed and nine empirical patterns have been observed in supermarkets, pharmacies, and convenience stores This law can be applied to a wide range of store types The rules are as follows 1. Purchase goals:  The first law is that: shoppers go to stores because the stores have something they want to buy  Implications: although shoppers enjoy shopping, they go shopping because they have to get the things that they want -Almost everyone has a purchase goal in mind - Although there may not be a mental list, there is a primary motivation for visiting a store -it is good for retailers because, if they are able to show customers that they have the thing that they want, they can attract more people into the store - This is the reason why Retailer advertising always shows the products and services that retailers sell  Another implication: - The primary source of shopper dissatisfaction is not being able to find the product they wish to buy - Sometimes the store is out of stock, and has a small range - This can reduce repeat purchase 2. Mental and physical availability:

 

“mental and physical availability largely determine the store choice” Implications: -shoppers rarely go far out of their way and certainly seldom drive or walk past many rival retailers they know of in order to go on a particular store] - However, shoppers do go past the stores they do not think of - While deciding for a place to shop, customers make use of their memory - They think of how to get there and where to park - Thus, retailers need to locate stores near customer and traffic flows of customers - Stores also need to advertise to build memory structures - Customers generally notice and recognize branded chain stores - Thus, they out-compete their rivals - This is mostly because of advertising and how the store looks

3. Limited time:   

“shoppers only spend a certain amount of time in store” They are very reluctant to increase this time Implications: - Shoppers do no spend a lot of time shopping and want to continue with the rest of their day - Thus, shoppers only tend to buy more when the trip Is easier and quicker - When a shopping trip goes faster than expected, shoppers have more time - The more time= the more things they want

4. Many short trips: 

People make fewer long shopping trips and more short trips Implications: - Retailers need to be able to provide quick shopping trips making it highly convenient for the customers to find the things that they are looking for - Product categories should be as visible as possible - Store should be full of useful navigational aids...