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Final

RMG400 final review notes for ch.6.docx

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Department
Retail Management
Course
RMG 400
Professor
Hong Yu
Semester
Fall

Description
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for years, such as cars, furniture, and appliances – Nondurables: Products that are used up in a few uses or become out-of-date as styles change The largest category of non-durables is A. Food B. Apparel C. Furniture D. Automobiles Purchases Based on Fashion Appeal • Style is a basic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
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