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The retailer decision-making process starts with selecting the target
market the retailer wants to appeal to. However, retailers entering
new countries, or even new geographic areas of a country they are
currently operating in, have been surprised when they have found that
the target market of their home location apparently does not exist
in the new location. Explain why this might occur.
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One of the key components of the retail mix is retail image and
promotional strategy, which encompasses the “amenities”
provided by the retailer, i.e., the store’s “atmospherics”.
What is the desired image sought by each of the following retailers
and which in-store “atmospherics” does each one use to
support this image?
a. Tim Hortons
b. Sears
c. First Choice Haircutters
d. Canadian Tire
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The text states that “retail image should match the target
market that is selected.” Determine the target market for each
of the four retail operations listed above. Do you think, taking into
account your answers to question 3, that the retail image of each
of these retailers matches its target market?
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Price is a powerful tool in the retail marketing mix. The text states
that when a retailer uses price as the primary means of differentiating
itself from competition, its price cuts must be truly significant
to compete with other retailers who have also chosen price as a means
of differentiation. Explain why.
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Does the above principle hold true for another factor that retailers
typically use to differentiate themselves from competition —
store atmosphere and service? In other words, if a retailer uses store
atmosphere and service as the primary means of differentiating itself
from competition, must its atmosphere and service be truly unique
to compete with other retailers who have also chosen this factor as
a means of differentiation?
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With regard to online shopping, it has been suggested that consumers
are more likely to search for product information, make a brand selection,
and acquire a product or service on the Internet when the value proposition
is intangible or informational. Explain what this means in your words.
Do you agree with this suggestion?
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Figure 16.5 indicates the relative potential for several different
product categories to be sold on the Internet. Rate these product
categories in terms of your willingness to buy them over the Internet.
Does the potential for selling each product category over the Internet
indicated in Figure 16.5 match up with your willingness to buy them
over the Internet? If not, discuss why there might be a difference.
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Think of all the shopping centres in your home town (or at least
the ones you and your family frequent) and classify them by type:
neighbourhood shopping centre, community shopping centre, or regional
shopping centre. They differ in terms of size as well as number and
type of stores, but can different shopping behaviours also be associated
with these different types of shopping centres?
