Identify and describe three kinds of specialty stores.
What will be an ideal response?
Specialty retailers are of three types: traditional specialty retailers, category killers, and off-price retailers.
Traditional specialty retailers are stores that carry a narrow product mix with deep product lines. Specialty retailers commonly sell such shopping products as apparel, jewelry, sporting goods, fabrics, computers, and pet supplies. The Limited, Gap, and Foot Locker are examples of retailers offering limited product lines but great depth within those lines.
Category killers are very large specialty stores that concentrate on a major product category and compete on the basis of low prices and broad product availability. These stores expand rapidly and gain sizable market shares, taking business away from smaller, higher-cost retail outlets. Examples of category killers include Home Depot (home improvement chain), Staples (office-supply chain), and PetSmart (pet supply chain).
Off-price retailers are stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below-wholesale prices for resale to consumers at deep discounts. They offer limited lines of national-brand and designer merchandise, usually clothing, shoes, or housewares. Examples of category killers include T.J. Maxx, Marshalls, Stein Mart, and Burlington Coat Factory. Off-price stores charge 20% to 50% less than department stores for comparable merchandise, but offer few customer services.
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Budget performance reports prepared for the vice-president of production would generally contain less detail than reports prepared for the various plant managers
Indicate whether the statement is true or false
One of the causes of switching behavior is unfair pricing.
Answer the following statement true (T) or false (F)
If a company standardizes on the components that are used in different models, it will:
A) reduce the variety of options offered to the customer. B) reduce the length of production runs. C) reduce waste. D) require the use of general-purpose machinery.
Charles Brothers Bakery's sales efforts to local schools emphasizes personal selling without any e-commerce support. If Charles Brothers Bakery is doing things right, we would expect that the situation of selling to schools requires
A. low relationship building and a low degree of consumer product awareness. B. high relationship building and a low degree of standardized information exchange. C. low relationship building and a high degree of standardized information exchange. D. low relationship building and a low degree of standardized information exchange. E. high relationship building and high consumer technology understanding.