Study Guides (248,069)
Canada (121,279)
RMG 400 (18)
Hong Yu (8)

RMG400 final review notes for ch.6.docx

3 Pages
Unlock Document

Retail Management
RMG 400
Hong Yu

Chapter6 : PRODUCT SELECTION DECISIONS • Merchandise mix : The types or mix of products that are available for customers to purchase • Product line: A group of products that are closely related because they function in a similar manner PRODUCT SELECTION DECISIONS • Decisions made by top management in the following areas will determine the image that the store projects to its customers – Target Market, Competition, Store Location and Layout, Merchandise Selection, Personnel TYPES OF PRODUCTS CUSTOMERS PURCHASE • What types of products do your customers most often purchase? • How much time are customers willing to spend buying a particular product? • What are customers’ expectations about durability and product quality? • Are your customers fashion forward? • Do customers expect your store to have “new” and cutting-edge products? • Will your customers purchase the latest fads and crazes? Purchases Based on Availability • Availability refers to the amount of effort customers are willing to exert to obtain a particular product • Products purchased can be grouped into four categories: – Convenience products, Impulse products, Shopping products, Specialty products • Products that the consumer is not willing to spend time, money, and effort in locating and evaluating are: a. Convenience products b. Shopping products c. Specialty products d. Fashion products Purchases Based on Durability and Quality • Durability refers to how long a product will last – Durables: Products that are capable of surviving many uses and usually last for years, such as cars, furniture, and appliances – Nondurables: Products that are used up in a few uses or become out-of-date as styles change The largest category of non-durables is A. Food B. Apparel C. Furniture D. Automobiles Purchases Based on Fashion Appeal • Style is a basic and distinctive mode of expression—the appearance of a product • Styles can be eye-catching, or they may never excite shoppers Purchasing “New” Products • Before adding new products, consider: – The compatibility of the new product with existing products carried by the store – The potential profitability of the new product – The placement of existing products within the product life cycle – The appropriateness of the new product for your customers – The ability of the competition to offer the same or similar products Purchasing Fads • Fads: Products that enter the marketplace quickly, are purchased with zeal, and then see sales that decline quickly PRODUCT LIF
More Less

Related notes for RMG 400

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.