Rent 9780073381046 | Retailing Management | Levy, Michael; Weitz, Barton @knetbooks.com

Summary Table of Contents Author Biography

Retailing Management by Levy and Weitz is the best-selling textbook in the retailing market.Retailing is a high tech, global, growth industry that provides challenging and rewarding career opportunities for college graduates. This book and its corresponding tools and exercises were written to expose students to the excitement of retailing and prepare them for a career in retailing and related fields.Known for its strategic look at retailing and current coverage, this new 7th edition continues to be organized around a model of strategic decision... MORE

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The World of Retailing
Introduction to the World of Retailing	p. 4
What Is Retailing?	p. 6
A Retailer's Role in a Supply Chain	p. 7
Retailers Create Value	p. 7
Social and Economic Significance of Retailing	p. 9
Social Responsibility	p. 9
Retail Sales	p. 9
Employment	p. 9
Global Retailers	p. 9
Structure of Retailing and Supply Chains around the World	p. 11
Opportunities in Retailing	p. 13
Management Opportunities	p. 13
Entrepreneurial Opportunities	p. 13
The Retail Management Decision Process	p. 15
Understanding the World of Retailing-Section I	p. 15
Developing a Retail Strategy-Section II	p. 17
JCPenney Moves from Main Street to the Mall	p. 19
Implementing the Retail Strategy-Sections III and IV	p. 21
Whole Foods Market: An Organic and Natural Food Supermarket Chain	p. 21
Ethical and Legal Considerations	p. 23
Summary	p. 25
Key Terms	p. 25
Get Out and Do It!	p. 25
Discussion Questions and Problems	p. 26
Suggested Readings	p. 26
Careers in Retailing	p. 26
Sources of Information about Retailing	p. 30
Types of Retailers	p. 34
Retailer Characteristics	p. 36
Type of Merchandise	p. 36
Variety and Assortment	p. 37
Services Offered	p. 39
Prices and the Cost of Offering Breadth and Depth of Merchandise and Services	p. 39
Food Retailers	p. 40
Supermarkets	p. 41
Supercenters	p. 44
Warehouse Clubs	p. 45
Convenience Stores	p. 46
General Merchandise Retailers	p. 47
Department Stores	p. 47
Full-Line Discount Stores	p. 49
Specialty Stores	p. 49
Drugstores	p. 51
Category Specialists	p. 51
Extreme Value Retailers	p. 53
Off-Price Retailers	p. 53
Nonstore Retailers	p. 55
Electronic Retailers	p. 55
Catalog and Direct-Mail Retailers	p. 55
Direct Selling	p. 57
Television Home Shopping	p. 57
Vending Machine Retailing	p. 58
Services Retailing	p. 59
Differences between Services and Merchandise Retailers	p. 60
Types of Ownership	p. 62
Independent, Single-Store Establishments	p. 62
Corporate Retail Chains	p. 63
Franchising	p. 63
Summary	p. 65
Key Terms	p. 65
Get Out and Do It!	p. 65
Discussion Questions and Problems	p. 66
Suggested Readings	p. 67
Comparison Shopping	p. 67
Multichannel Retailing	p. 70
Retail Channels for Interacting with Customers	p. 72
Store Channel	p. 72
Catalog Channel	p. 74
Internet Channel	p. 74
Evolution toward Multichannel Retailing	p. 83
Overcoming the Limitations of an Existing Format	p. 83
Capabilities Needed for Multichannel Retailing	p. 85
Who Has These Critical Resources?	p. 86
Will Manufacturers Bypass Retailers and Sell Directly to Consumers?	p. 87
Which Channel Is the Most Profitable?	p. 88
Issues in Multichannel Retailing	p. 88
Integrated Shopping Experience	p. 89
Brand Image	p. 89
Merchandise Assortment	p. 90
Pricing	p. 91
Shopping in the Future	p. 91
Shopping Experience	p. 91
Supporting the Shopping Experience	p. 92
Summary	p. 93
Key Terms	p. 93
Get Out and Do It!	p. 93
Discussion Questions and Problems	p. 94
Suggested Readings	p. 94
Customer Buying Behavior	p. 96
The Buying Process	p. 98
Need Recognition	p. 99
Information Search	p. 102
Evaluation of Alternatives: The Multiattribute Model	p. 105
Purchasing the Merchandise or Service	p. 110
Postpurchase Evaluation	p. 111
Types of Buying Decisions	p. 111
Extended Problem Solving	p. 111
Limited Problem Solving	p. 111
Habitual Decision Making	p. 112
Social Factors Influencing the Buying Process	p. 113
Family	p. 113
Reference Groups	p. 114
Culture	p. 114
Market Segmentation	p. 116
Criteria for Evaluating Market Segments	p. 116
Approaches for segmenting Markets	p. 117
Composite Segmentation Approaches	p. 123
Summary	p. 123
Key Terms	p. 124
Get Out and Do It!	p. 124
Discussion Questions and Problems	p. 125
Suggested Readings	p. 126
Customer Buying Behavior and Fashion	p. 126
Retailing Strategy
Retail Market Strategy	p. 132
What Is a Retail Strategy?	p. 134
Definition of Retail Market Strategy	p. 134
Target Market and Retail Format	p. 135
Building a Sustainable Competitive Advantage	p. 137
Customer Loyalty	p. 138
Location	p. 140
Human Resource Management	p. 141
Distribution and Information Systems	p. 141
Unique Merchandise	p. 141
Vendor Relations	p. 142
Customer Service	p. 142
Multiple Sources of Advantage	p. 142
Growth Strategies	p. 144
Market Penetration	p. 144
Market Expansion	p. 145
Retail Format Development	p. 145
Diversification	p. 145
Strategic Opportunities and Competitive Advantage	p. 146
Global Growth Opportunities	p. 146
Who Is Successful and Who Isn't?	p. 146
Keys to Success	p. 148
Evaluating Global Growth Opportunities	p. 150
Entry Strategies	p. 152
The Strategic Retail Planning Process	p. 153
Define the Business Mission	p. 154
Conduct a Situation Audit	p. 154
Identify Strategic Opportunities	p. 159
Evaluate Strategic Opportunities	p. 159
Establish Specific Objectives and Allocate Resources	p. 159
Develop a Retail Mix to Implement Strategy	p. 159
Evaluate Performance and Make Adjustments	p. 159
Strategic Planning in the Real World	p. 160
Summary	p. 161
Key Terms	p. 161
Get Out and Do It!	p. 161
Discussion Questions and Problems	p. 162
Suggested Readings	p. 162
Using the Market Attractiveness/Competitive Position Matrix	p. 163
Financial Strategy	p. 166
Objectives and Goals	p. 168
Financial Objectives	p. 168
Societal Objectives	p. 168
Personal Objectives	p. 169
Strategic Profit Model	p. 169
Profit Margin Management Path	p. 171
Asset Management Path	p. 176
Return on Assets	p. 179
Illustration: Kelly Bradford's Evaluation of the Gifts-To-Go.com Growth Opportunity	p. 181
Setting and Measuring Performance Objectives	p. 184
Top-Down versus Bottom-Up Process	p. 185
Accountable for Performance	p. 185
Performance Objectives and Measures	p. 186
Types of Measures	p. 186
Assessing Performance: The Role of Benchmarks	p. 188
Summary	p. 190
Key Terms	p. 190
Get Out and Do It!	p. 190
Discussion Questions and Problems	p. 191
Suggested Readings	p. 191
Retail Locations	p. 192
Types of Locations	p. 194
Unplanned Retail Locations	p. 195
Freestanding Sites	p. 195
City or Town Locations	p. 196
Shopping Centers	p. 199
Neighborhood and Community Shopping Centers	p. 200
Power Centers	p. 201
Shopping Malls	p. 201
Lifestyle Centers	p. 204
Fashion/Specialty Centers	p. 205
Outlet Centers	p. 205
Theme/Festival Centers	p. 207
Larger, Multiformat Developments-Omnicenters	p. 207
Mixed Use Developments	p. 207
Other Location Opportunities	p. 208
Airports	p. 209
Temporary Locations	p. 209
Resorts	p. 210
Store within a Store	p. 210
Location and Retail Strategy	p. 210
Shopping Behavior of Consumers in Retailer's Target Market	p. 210
Size of Target Market	p. 212
Uniqueness of Retail Offering	p. 212
Legal Considerations	p. 213
Environmental Issues	p. 213
Zoning and Building Codes	p. 213
Summary	p. 214
Key Terms	p. 214
Get Out and Do It!	p. 214
Discussion Questions and Problems	p. 215
Suggested Readings	p. 215
Retail Site Location	p. 216
Evaluating Specific Areas for Locations	p. 218
Economic Conditions	p. 218
Competition	p. 219
Strategic Fit	p. 220
Operating Costs	p. 220
Number of Stores in an Area	p. 221
Economies of Scale from Multiple Stores	p. 221
Cannibalization	p. 221
Evaluating a Site for Locating a Retail Store	p. 222
Site Characteristics	p. 222
Traffic Flow and Accessibility	p. 223
Location Characteristics	p. 224
Restrictions and Costs	p. 225
Locations within a Shopping Center	p. 225
Trade Area Characteristics	p. 227
Trade Area Definition	p. 227
Factors Affecting the Size of the Trade Area	p. 228
Measuring the Trade Area for a Retail Site	p. 229
Sources of Information about the Trade Area	p. 230
Competition in the Trade Area	p. 234
Estimating Potential Sales for a Store Site	p. 235
Huff Gravity Model	p. 235
Regression Analysis	p. 237
Analog Approach	p. 238
Illustration of Site Selection: Edward Beiner Optical	p. 238
Competitive Analysis	p. 239
Define Present Trade Area	p. 239
Trade Area Characteristics	p. 240
Match Characteristics of Present Trade Area with Potential Sites	p. 241
Negotiating a Lease	p. 241
Types of Leases	p. 241
Terms of the Lease	p. 242
Summary	p. 243
Key Terms	p. 243
Get Out and Do It!	p. 244
Discussion Questions and Problems	p. 244
Suggested Readings	p. 245
Human Resource Management	p. 246
Gaining Competitive Advantage Through Human Resource Management	p. 248
Objectives of Human Resource Management	p. 248
The Human Resource Triad	p. 250
Special HR Conditions Facing Retailers	p. 250
Designing the Organization Structure for a Retail Firm	p. 252
Matching Organization Structure to Retail Strategy	p. 253
Organization of a Single-Store Retailer	p. 253
Organization of a National Retail Chain	p. 255
Organization Structures of Other Types of Retailers	p. 259
Retail Organization Design Issues	p. 259
Centralization versus Decentralization	p. 259
Coordinating Merchandise and Store Management	p. 260
Winning the Talent War	p. 261
Attracting Talent: Employment Marketing	p. 262
Developing Talent: Selection and Training	p. 262
Motivating Talent: Aligning Goals	p. 263
Keeping Talent: Building Employee Commitment	p. 266
Issues in Retail Human Resource Management	p. 269
Managing Diversity	p. 269
Legal and Regulatory Issues in Human Resource Management	p. 270
Use of Technology	p. 273
Summary	p. 273
Key Terms	p. 273
Get Out and Do It!	p. 274
Discussion Questions and Problems	p. 275
Suggested Readings	p. 275
Information Systems and Supply Chain Management	p. 276
Creating Strategic Advantage Through Supply Chain Management and Information Systems	p. 278
Improved Product Availability	p. 279
Higher Return on Investment	p. 279
Strategic Advantage	p. 280
Information Flows	p. 282
Data Warehouse	p. 284
Electronic Data Interchange	p. 285
Pull and Push Supply Chains	p. 286
The Physical Flow of Merchandise-Logistics	p. 287
Distribution Centers versus Direct Store Delivery	p. 287
The Distribution Center	p. 289
Reverse Logistics	p. 292
Logistics for Fulfilling Catalog and Internet Orders	p. 292
Outsourcing Logistics	p. 293
Collaboration Between Retailers and Vendors in Supply Chain Management	p. 295
Using EDI	p. 296
Sharing Information	p. 296
Vendor-Managed Inventory	p. 297
Collaborative Planning, Forecasting, and Replenishment	p. 299
Radio Frequency Identification (RFID)	p. 299
Benefits of RFID	p. 301
Impediments to the Adoption of RFID	p. 301
Summary	p. 302
Key Terms	p. 302
Get Out and Do It!	p. 303
Discussion Questions and Problems	p. 303
Suggested Readings	p. 303
Customer Relationship Management	p. 304
The CRM Process	p. 306
What Is Loyalty?	p. 306
Overview of the CRM Process	p. 308
Collecting Customer Data	p. 308
Customer Database	p. 308
Identifying Information	p. 309
Privacy and CRM Programs	p. 311
Analyzing Customer Data and Identifying Target Customers	p. 313
Identifying the Best Customers	p. 314
Developing CRM Programs	p. 318
Customer Retention	p. 318
Converting Good Customers into Best Customers	p. 321
Dealing with Unprofitable Customers	p. 322
Implementing CRM Programs	p. 323
Summary	p. 324
Key Terms	p. 324
Get Out and Do It!	p. 324
Discussion Questions and Problems	p. 325
Suggested Readings	p. 325
Merchandise Management
Managing Merchandise Assortments	p. 328
Merchandise Management Process Overview	p. 330
The Buying Organization	p. 330
Merchandise Category-The Planning Unit	p. 332
Evaluating Merchandise Management Performance-GMROI	p. 334
Managing Inventory Turnover	p. 336
Merchandise Management Process	p. 337
Types of Merchandise Management Planning Processes	p. 338
Forecasting Sales	p. 340
Category Life Cycles	p. 340
Forecasting Staple Merchandise	p. 342
Forecasting Fashion Merchandise Categories	p. 345
Sales Forecasting for Service Retailers	p. 348
Developing an Assortment Plan	p. 349
Category Variety and Assortment	p. 349
Determining Variety and Assortment	p. 349
Setting Inventory and Product Availability Levels	p. 352
Product Availability	p. 352
Summary	p. 353
Key Terms	p. 354
Get Out and Do It!	p. 354
Discussion Questions and Problems	p. 354
Suggested Readings	p. 355
Merchandise Planning Systems	p. 356
Staple Merchandise Management Systems	p. 359
The Inventory Management Report	p. 360
Fashion Merchandise Management Systems	p. 362
Monthly Sales Percentage Distribution to Season (Line 1)	p. 362
Monthly Sales (Line 2)	p. 363
Monthly Reductions Percentage Distribution to Season (Line 3)	p. 363
Monthly Reductions (Line 4)	p. 364
BOM (Beginning-of-Month) Stock-to-Sales Ratio (Line 5)	p. 364
BOM Stock (Line 6)	p. 366
EOM (End-of-Month) Stock (Line 7)	p. 366
Monthly Additions to Stock (Line 8)	p. 367
Evaluating the Merchandise Budget Plan	p. 367
Open-to-Buy System	p. 367
Calculating Open-to-Buy for the Current Period	p. 368
Allocating Merchandise to Stores	p. 369
Amount of Merchandise Allocated to Each Store	p. 370
Type of Merchandise Allocated to Stores	p. 370
Timing of Merchandise Allocations to Stores	p. 371
Analyzing Merchandise Management Performance	p. 373
Sell-Through Analysis Evaluating Merchandise Plan	p. 373
Evaluating the Assortment Plan and Vendors	p. 373
Summary	p. 377
Key Terms	p. 377
Get Out and Do It!	p. 377
Discussion Questions and Problems	p. 378
Suggested Readings	p. 379
Retailing Inventory Method	p. 379
Buying Merchandise	p. 382
Brand Alternatives	p. 384
National Brands	p. 384
Private-Label Brands	p. 385
Buying National Brand Merchandise	p. 390
Meeting National Brand Vendors	p. 390
National Brand Buying Process	p. 392
Developing and Sourcing Private-Label Merchandise	p. 392
Developing Private-Label Merchandise	p. 392
Sourcing Merchandise	p. 394
Global Sourcing	p. 394
Support Services for Buying Merchandise	p. 395
Resident Buying Offices	p. 395
Retail Exchanges	p. 396
Negotiating with Vendors	p. 396
Knowledge Is Power	p. 397
Negotiation Issues	p. 398
Tips for Effective Negotiating	p. 399
Strategic Relationships	p. 401
Defining Strategic Relationships	p. 401
Maintaining Strategic Relationships	p. 402
Building Partnering Relationships	p. 403
Legal and Ethical Issues for Buying Merchandise	p. 404
Summary	p. 409
Key Terms	p. 409
Get Out and Do It!	p. 410
Discussion Questions and Problems	p. 410
Suggested Readings	p. 411
Retail Pricing	p. 412
Considerations in Setting Retail Prices	p. 414
Customer Price Sensitivity and Cost	p. 414
Competition	p. 416
Legal and Ethical Pricing Issues	p. 418
Setting Retail Prices	p. 420
Setting Prices Based on Costs	p. 420
Merchandising Optimization Software	p. 422
Profit Impact of Setting a Retail Price: The Use of Break-Even Analysis	p. 422
Price Adjustments	p. 423
Markdowns	p. 424
Variable Pricing and Price Discrimination	p. 427
Pricing Strategies	p. 431
High/Low Pricing	p. 431
Everyday Low Pricing	p. 432
Advantages of the Pricing Strategies	p. 432
Pricing Services	p. 433
Matching Supply and Demand	p. 433
Determining Service Quality	p. 435
Pricing Techniques for Increasing Sales	p. 435
Leader Pricing	p. 435
Price Lining	p. 435
Odd Pricing	p. 436
The Internet and Price Competition	p. 437
Summary	p. 437
Key Terms	p. 438
Get Out and Do It!	p. 438
Discussion Questions and Problems	p. 439
Suggested Readings	p. 439
Retail Communication Mix	p. 440
Using Communication Programs to Develop Brand Images and Build Customer Loyalty	p. 442
Value of Brand Image	p. 442
Building Brand Equity	p. 443
Extending the Brand Name	p. 447
Methods of Communicating with Customers	p. 447
Paid Impersonal Communications	p. 447
Paid Personal Communications	p. 451
Unpaid Impersonal Communications	p. 452
Unpaid Personal Communications	p. 453
Strengths and Weaknesses of Communication Methods	p. 455
Planning the Retail Communication Program	p. 457
Establish Objectives	p. 457
Determine the Communication Budget	p. 459
Allocation of the Promotional Budget	p. 463
Plan, Implement, and Evaluate Communication Programs-Three Illustrations	p. 463
Summary	p. 465
Key Terms	p. 465
Get Out and Do It!	p. 466
Discussion Questions and Problems	p. 466
Suggested Readings	p. 467
Implementing Retail Advertising Programs	p. 467
Store Management
Managing the Store	p. 474
Store Management Responsibilities	p. 476
Recruiting and Selecting Store Employees	p. 477
Job Analysis	p. 477
Job Description	p. 478
Locating Prospective Employees	p. 478
Screening Applicants to Interview	p. 479
Selecting Applicants	p. 480
Legal Considerations in Selecting and Hiring Store Employees	p. 481
Orientation and Training Programs for New Store Employees	p. 482
Orientation Programs	p. 482
Training Store Employees	p. 483
Motivating and Managing Store Employees	p. 485
Leadership	p. 485
Motivating Employees	p. 486
Setting Goals or Quotas	p. 487
Maintaining Morale	p. 488
Sexual Harassment	p. 489
Evaluating Store Employees and Providing Feedback	p. 490
Who Should Do the Evaluation?	p. 490
How Often Should Evaluations Be Done?	p. 490
Format for Evaluations	p. 491
Evaluation Errors	p. 492
Compensate and Reward Store Employees	p. 492
Extrinsic Rewards	p. 493
Intrinsic Rewards	p. 493
Compensation Programs	p. 494
Designing the Compensation Program	p. 495
Legal Issues in Compensation	p. 496
Controlling Costs	p. 496
Labor Scheduling	p. 497
Green and Energy-Efficient Stores	p. 498
Store Maintenance	p. 498
Reducing Inventory Shrinkage	p. 499
Calculating Shrinkage	p. 499
Organized and High-Tech Retail Theft	p. 499
Detecting and Preventing Shoplifting	p. 500
Reducing Employee Theft	p. 501
Summary	p. 503
Key Terms	p. 503
Get Out and Do It!	p. 504
Discussion Questions and Problems	p. 504
Suggested Readings	p. 505
Store Layout, Design, and Visual Merchandising	p. 506
Store Design Objectives	p. 508
Store Design and Retail Strategy	p. 508
Influence Customer Buying Behavior	p. 509
Flexibility	p. 510
Cost	p. 510
Legal Considerations-Americans With Disabilities Act	p. 510
Design Trade-Offs	p. 511
Store Design	p. 512
Layouts	p. 512
Signage and Graphics	p. 516
Feature Areas	p. 518
Space Management	p. 521
Space Allocated to Merchandise Categories	p. 521
Location of Merchandise Categories and Design Elements	p. 522
Location of Merchandise within a Category: The Use of Planograms	p. 525
Visual Merchandising	p. 527
Fixtures	p. 527
Presentation Techniques	p. 528
Atmospherics	p. 530
Lighting	p. 530
Color	p. 531
Music	p. 531
Scent	p. 531
How Exciting Should a Store Be?	p. 532
Web Site Design	p. 532
Simplicity Matters	p. 532
Getting Around	p. 533
Let Them See It	p. 533
Blend the Web Site with the Store	p. 533
Prioritize	p. 533
Type of Layout	p. 533
Checkout	p. 534
Summary	p. 535
Key Terms	p. 535
Get Out and Do It!	p. 535
Discussion Questions and Problems	p. 536
Suggested Readings	p. 537
Customer Service	p. 538
Strategic Advantage Through Customer Service	p. 540
Customer Service Strategies	p. 541
Customer Evaluations of Service Quality	p. 543
The Gaps Model for Improving Retail Service Quality	p. 546
Knowing What Customers Want: The Knowledge Gap	p. 547
Setting Service Standards: The Standards Gap	p. 549
Meeting and Exceeding Service Standards: The Delivery Gap	p. 552
Communicating the Service Promise: The Communications Gap	p. 556
Service Recovery	p. 557
Listening to Customers	p. 558
Providing a Fair Solution	p. 558
Resolving Problems Quickly	p. 559
Summary	p. 559
Key Terms	p. 559
Get Out and Do It!	p. 560
Discussion Questions and Problems	p. 560
Suggested Readings	p. 561
Starting Your Own Retail Business	p. 562
Starting a Franchise Business	p. 570
Cases
Overview Grid	p. 575
Tractor Supply Company-Targeting the Hobby Farmer	p. 576
Rainforest Cafe: A Wild Place to Shop and Eat	p. 577
Providing a Retail Experience: Build-A-Bear Workshop	p. 578
Wal-Mart and Corporate Social Responsibility	p. 579
Should Retailers Use Blogs?	p. 580
Mall Anchors Away! The Franklins Discover Online Shopping	p. 581
The Sanchez Family Buys Bicycles	p. 582
Retailing in India: The Impact of Hypermarkets	p. 583
Diamonds: From Mine to Market	p. 584
Save-A-Lot	p. 586
Royal Ahold: The Biggest Supermarket Retailer You Have Never Heard Of	p. 587
The Competitive Environment in the 18- to 22-Year-Old Apparel Market	p. 588
Tiffany's and Blue Nile: Comparing Financial Performance	p. 589
Stephanie's Boutique: Selecting a Store Location	p. 591
Hutch: Locating a New Store	p. 592
Home Depot Changes Directions	p. 597
Avon Embraces Diversity	p. 598
Nordstrom Revamps Its Loyalty Program	p. 599
Nolan's Finest Foods: Category Management	p. 600
Developing a Buying Plan for Hughe's	p. 602
McFadden's Department Store: Preparation of a Merchandise Budget Plan	p. 603
Selling Pens to Wal-Mart	p. 604
How Much for a Good Smell?	p. 605
Promoting a Sale	p. 606
Macy's: A National Department Store Brand	p. 606
Discount Dining Draws a Crowd: Restaurant Weeks in Major Cities	p. 608
Enterprise Builds on People	p. 609
Diamond in the Rough	p. 610
Fresh Ideas in Grocery Store Layout	p. 611
Sephora	p. 611
A Stockout at Discmart: Will Substitution Lead to Salvation?	p. 612
Customer Service and Relationship Management at Nordstrom	p. 613
Lindy's Bridal Shoppe	p. 614
Is Apple America's Best Retailer?	p. 616
Starbucks Coffee Company	p. 618
New Product Development at Yankee Candle Company	p. 621
PetSmart: Where Pets Are Family	p. 623
Interviewing for a Management Trainee Position	p. 625
Glossary	p. 629
Indexes
Name	p. 677
Company	p. 683
Subject	p. 687
Table of Contents provided by Ingram. All Rights Reserved.

Barton A. Weitz is presently the JCPenney Eminent Scholar Chair in Retail Management in the Warrington College of Business Administration at the University of Florida.

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