MKTG 341 Chapter Notes - Chapter 13: Costco, Ross Dress For Less, Saks Fifth Avenue
9 Dec 2014
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Retailing: activities involved in selling, renting, and providing products and services to ultimate consumers for personal family or household use. Producers and consumers meet through retailing actions, it also creates customer value. Utilities provided by retailers create value for consumers. 1 form of ownership: distinguishes retail outlets based on whether independent retailers, corporate chains, or contractual systems own the outlet. 3 general forms of retail ownership: independent retailer, corporate chain, contractual systems. Independent retailer: offer convenience, personal service, lifestyle compatibility, owner gets to be his own boss. *centralization in decision making and purchasing is common. * have an advantage in dealing with manufacturers. Contractual systems: independently owned stores that band together to act like a chain. In a franchise system: individual or firm contracts with a parent company to set up a business or retail outlet. 2 types of franchises: business format franchises, product distribution franchises.
