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Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the potential intent to purchase a suitable selection of them. A typology of shopper types has been developed by scholars which identifies one group of shoppers as recreational shoppers, that is, those who enjoy shopping and view it as a leisure activity.
Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Retailers satisfy demand identified through a supply chain. The term "retailer" is typically applied where a service provider fills the small orders of many individuals, who are end-users, rather than large orders of a small number of wholesale, corporate or government clientele. Shopping generally refers to the act of buying products. Sometimes this is done to obtain final goods, including necessities such as food and clothing; sometimes it takes place as a recreational activity. Recreational shopping often involves window shopping and browsing: it does not always result in a purchase.
Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative way that entices customers to purchase more items or products.
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.
A showroom is a large space used to display products or show entertainment.
Planograms, also known as plano-grams, plan-o-grams, schematics and POGs, are visual representations of a store's products or services on display. They are considered a tool for visual merchandising. According to the Oxford English Dictionary, a planogram "is a diagram or model that indicates the placement of retail products on shelves in order to maximize sales." The effectiveness of the planogram can be measured by the sales volume generated from the specific area being diagramed.
Brick and mortar refers to a physical presence of an organization or business in a building or other structure. The term brick-and-mortar business is often used to refer to a company that possesses or leases retail shops, factory production facilities, or warehouses for its operations. More specifically, in the jargon of e-commerce businesses in the 2000s, brick-and-mortar businesses are companies that have a physical presence and offer face-to-face customer experiences.
Once the strategic plan is in place, retail managers turn to the more managerial aspects of planning. A retail mix is devised for the purpose of coordinating day-to-day tactical decisions. The retail marketing mix typically consists of six broad decision layers including product decisions, place decisions, promotion, price, personnel and presentation. The retail mix is loosely based on the marketing mix, but has been expanded and modified in line with the unique needs of the retail context. A number of scholars have argued for an expanded marketing, mix with the inclusion of two new Ps, namely, Personnel and Presentation since these contribute to the customer's unique retail experience and are the principal basis for retail differentiation. Yet other scholars argue that the Retail Format should be included. The modified retail marketing mix that is most commonly cited in textbooks is often called the 6 Ps of retailing.
Engagement marketing, sometimes called "experiential marketing", "event marketing", "on-ground marketing", "live marketing", "participation marketing", "Loyalty Marketing", or "special events" is a marketing strategy that directly engages consumers and invites and encourages them to participate in the evolution of a brand or a brand experience. Rather than looking at consumers as passive receivers of messages, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing programs, developing a relationship with the brand.
Visual merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits. The purpose of such visual merchandising is to attract, engage, and motivate the customer towards making a purchase.
Retail design is a creative and commercial discipline that combines several different areas of expertise together in the design and construction of retail space. Retail design is primarily a specialized practice of architecture and interior design, however it also incorporates elements of industrial design, graphic design, ergonomics, and advertising.
Pop-up retail, also known as pop-up store or flash retailing, is a trend of opening short-term sales spaces that last for days to weeks before closing down, often to catch onto a fad or scheduled event.
In retail, a product return is the process of a customer taking previously purchased merchandise back to the retailer, and in turn receiving a refund in the original form of payment, exchange for another item, or a store credit.
Omnichannel is a neologism portmanteau describing an advertising strategy.
Massification is a strategy that some luxury companies use in order to attain growth in the sales of product. Some luxury brands have taken and used the concept of massification to allow their brands to grow to accommodate a broader market. As a method of implementing massification, companies have created diffusion lines. Diffusion lines are an offshoot of a company or a designers original line that is less expensive in order to reach a broader market and gain a wider consumer base. Another strategy used in massification is brand extensions, which is when an already established company releases a new product under their name.
The retail apocalypse is the closing of numerous brick-and-mortar retail stores, especially those of large chains worldwide, starting around 2010 and continuing onward. In 2019, retailers in the United States announced 9,302 store closings, a 59% jump from 2018, and the highest number since tracking the data began in 2012. Over 12,000 physical stores have closed due to factors including over-expansion of malls, rising rents, bankruptcies of leveraged buyouts, low quarterly profits outside holiday binge spending, delayed effects of the Great Recession, and changes in spending habits. American consumers have shifted their purchasing habits due to various factors, including experience-spending versus material goods and homes, casual fashion in relaxed dress codes, as well as the rise of e-commerce, mostly in the form of competition from juggernaut companies such as Amazon.com and Walmart. A 2017 Business Insider report dubbed this phenomenon the "Amazon effect," and calculated that Amazon.com was generating greater than 50% of the growth of retail sales.
Immersive commerce or iCommerce is an extension of E-commerce that focuses on improving customer experience by using augmented reality, virtual reality and immersive technology to create virtual smart stores from existing brick and mortar locations.
Commercial augmented reality (CAR) describes augmented reality (AR) applications that support various B2B (Business-to-Business) and B2C (Business-to-Consumer) commercial activities, particularly for the retail industry. The use of CAR started in 2010 with virtual dressing rooms for E-commerce.
b8ta is a retail-as-a-service company with a chain of 9 standalone retail stores, which serve as presentation centers for consumer electronics and home goods. The company was founded in 2015 by Vibhu Norby, William Mintun, Phillip Raub, and Nicholas Mann. Its first location opened in Palo Alto in December 2015. Companies can pay to rent out space for their product to be displayed inside the locations, along with a tablet that each brand customizes with software. All of the products in stores are on display out-of-the-box and can be touched and demoed. The company also sells the products directly to consumers. Store employees, which the company calls "b8ta testers", assist customers with demos and product information which is taught to them by companies with products on display. In November 2019, b8ta opened a fashion store named Forum in West Hollywood with the same business model.
The retail format influences the consumer's store choice and addresses the consumer's expectations. At its most basic level, a retail format is a simple marketplace, that is; a location where goods and services are exchanged. In some parts of the world, the retail sector is still dominated by small family-run stores, but large retail chains are increasingly dominating the sector, because they can exert considerable buying power and pass on the savings in the form of lower prices. Many of these large retail chains also produce their own private labels which compete alongside manufacturer brands. Considerable consolidation of retail stores has changed the retail landscape, transferring power away from wholesalers and into the hands of the large retail chains.
References
- 1 2 3 4 5 6 Dhillon, Sunny (2018). "The rise of experiential commerce". TechCrunch. Retrieved 2 May 2019.
- ↑ Blumberg, Yoni (December 4, 2018). "Millennials spend less than previous generations because they literally have less money, Fed says". CNBC.
- ↑ Woosley, Jason. "Council Post: The Rise Of Experiential Commerce: Why Relationships, Not Prices, Are The Future Of Commerce". Forbes.