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Retail Management: International Edition

Retail Management: International Edition

Barry R Berman | Joel R Evans

(2013)

Additional Information

Book Details

Abstract

For undergraduate and graduate retail management courses

The text that helps students thrive in today’s retailing industry. 
Without a predefined and well-integrated strategy, a retail firm may flounder as it’s attempting to cope with the changing environment that surrounds it. Berman/Evans’ reader-friendly text, Retail Management: A Strategic Approach, provides a strategic, decision-making approach that illustrates how retailers plan for, and adapt to, today’s changing and complex retail environment.  

Table of Contents

Section Title Page Action Price
Cover Cover
Contents 9
Preface 19
About the Authors 25
Acknowledgments 27
PART 1 An Overview of Strategic Retail Management 31
Chapter 1 An Introduction to Retailing 32
Chapter Objectives 32
Overview 33
The Framework of Retailing 34
Reasons for Studying Retailing 34
The Special Characteristics of Retailing 38
The Importance of Developing and Applying a Retail Strategy 40
Target Corporation: The Winning Approach of an Upscale Discounter! 40
The Retailing Concept 43
The Focus and Format of the Text 46
Chapter Summary 47
Key Terms 48
Questions for Discussion 48
Web-Based Exercises Berman Evans Blog 49
Appendix Understanding the Recent Economic Downturn in the United States and Around the Globe 50
The Current Economic Downtum 50
The Impact of the Downtum on Economies Around the World 51
The Effect of the Economic Downturn on Retailing 51
Strategic Options for Retailers In Weak Economic Times 53
Chapter 2 Building and Sustaining Relationships in Retailing 55
Chapter Objectives 55
Overview 56
Value and the Value Chain 56
Retailer Relationships 58
Customer Relationships 59
Channel Relationships 66
The Differences in Relationship Building Between Goods and Service Retailers 67
Technology and Relationships in Retailing 69
Electronic Banldng 70
Customer and Supplier Interactions 71
Ethical Performance and Relationships in Retailing 72
Ethics 73
Social Responsbility 74
Consumerism 75
Chapter Summary 76
Key Terms 78
Questions for Discussion 78
Web-Based Exerciser Sephora (www.sephora.com) 78
Appendix Planning for the Unique Aspects of Service Retailing 79
Abilities Required to Be a Successful Service Retailer 79
Improving the Performance of Service Retailers 79
The Strategy of Pal's Sudden Service:A Baldrige Award Winner 81
Chapter 3 Strategic Planning in Retailing 83
Chapter Objectives 83
Overview 84
Situation Analysis 84
Organizational Mission 85
Ownership and Management Alternatives 87
Goods/Service Category 89
Personal Abilities 90
Financial Resources 91
Time Demands 91
Objectives 92
Sales 93
Profit 93
Satisfaction of Publics 94
Image (Positioning) 94
Selection of Objectives 96
Identification of Consumer Characteristics and Needs 97
Overall Strategy 98
Controllable Variables 99
Uncontrollable Variables 100
Integrating Overal Strategy 101
Specific Activities 102
Control 103
Feedback 103
A Strategic Planning Template for Retail Management 104
Chapter Summary 107
Key Terms 107
Questions for Discussion\r\n 108
Web-Based Exercise: Angie's List (www.angieslist.com) 108
Appendix The Special Dimensions of Strategic Planning in a Global Retailing Environment 109
The Strategic Planning Process and Global Retailing 109
Opportunities and Global Retailing 109
Ten Trends in Global Retailing 111
U.S. Retailers in Foreign Markets 112
Foreign Retailers in the U.S. Market 112
Part 1 Short Cases 114
1: Howard Schultz on Starbucks’ Future Plans to Grow 114
2: Manufacturer–Retailer Relations in the Chocolate Business 114
3: Carrefour’s and Best Buy’s Chinese Adventures 115
4: Ahold: A European Powerhouse Facing Tough Times 116
Part 1 Comprehensive Case: Abercrombie & Fitch Co.: Looking to the Future 117
PART 2 Situation Analysis 121
Chapter 4 Retail Institutions by Ownership 122
Chapter Objectives 122
Overview 123
Retail Institutions Characterized by Ownership 123
Independent 124
Chain 126
Franchising 128
Leased Department 131
Vertical Marketing System 133
Consumer Cooperative 134
Chapter Summary\r\n 135
Key Terms\r\n 136
Questions for Discussion 136
Web-Based Exercise: 7-Eleven 136
Appendix The Dynamics of Franchising 137
Managerial Issues in Franchising 137
Franchisor-Franchisee Relationships 140
Chapter 5 Retail Institutions by Store-Based Strategy Mix 142
Chapter Objectives 142
Overview 143
Considerations in Planning a Retail Strategy Mix 143
The Wheel of Retailing 143
Scrambled Merchandising 145
The Retail Life Cycle 146
How Retail Institutions Are Evolving 148
Mergers, Diversification, and Downsizing 148
Cost Containment and Value-Driven Retailing 148
Retail Institutions Categorized by Store-Based Strategy Mix 149
Food-Oriented Retailers 149
General Merchandise Retailers 154
Chapter Summary\r\n 161
Key Terms\r\n 162
Questions for Discussion\r\n 162
Web-Based Exercise: Dillard's (www.dillards.com) 163
Chapter 6 Web, Nonstore-Based, and Other Forms of Nontraditional Retailing 164
Chapter Objectives 164
Overview 165
Direct Marketing 166
The Domain of Direct Marketing 168
The Customer Data Base: Key to Successful Direct Marketing 168
Emerging Trends 169
The Steps in a Direct Marketing Strategy 171
Key Issues Fading Direct Marketers 173
Direct Selling 173
Vending Machines 176
Electronic Retailing: The Emergence of the World Wide Web 177
The Role of the Web 177
The Scope of Web Users 178
Characteristics of Web Users 179
Factors to Consider in Planning Whether to Have a Web Site 180
Examples of Web Retailing in Action 182
Other Nontraditional Forms of Retailing 183
Video Kiosks 183
Airport Retailing 184
Chapter Summary 186
Key Terms 187
Questions for Discussion 187
Web-Based Exercise: Trends & Data Section of Internet Retailer's Web Site 187
Appendix Multi-Channel Retailing 188
Advantages of Multi-Channel Retail Strategies 189
Developing a Well-Integrated Multi-Channel Strategy 190
Special Challenges 191
Part 2 Short Cases 193
1: Ernie’s Auto Body: Utilizing the Key Choice Collision Center Network 193
2: Family Dollar: Reinventing the Discount Store 193
3: Amazon.com’s Mom Program 194
4: The Status of E-Tailing in China 195
Part 2 Comprehensive Case: Retailing Around the Globe 196
PART 3 Targeting Customers and Gathering Information 201
Chapter 7 Identifying and Understanding Consumers 202
Chapter Objectives 202
Overview 203
Consumer Demographics and Lifestyles 204
Consumer Demographics 204
Consumer Lifestyles 206
Retailing Implications of Consumer Demographics and Lifestyles 208
Consumer Profiles 210
Consumer Needs and Desires 211
Shopping Attitudes and Behavior 212
Attitudes Toward Shopping 212
Where People Shop 213
The Consumer Decision Process 214
Types of Consumer Decision Making 218
Impulse Purchases and Customer Loyalty 219
Retailer Actions 221
Retailers with Mass Marketing Strategies 221
Retailers with Concentrated Marketing Strategies 223
Retailers with Differentiated Marketing Strategies 223
Environmental Factors Affecting Consumers 223
Chapter Summary 224
Key Terms 225
Questions for Discussion 225
Web-Based Exercise: Macy's and Bloomingdale's 225
Chapter 8 Information Gathering and Processing in Retailing 226
Chapter Objectives 226
Overview 227
Information Flows in a Retail Distribution Channel 228
Avoiding Retail Strategies Based on Inadequate Information 229
The Retail Information System 230
Building and Using a Retail Information System 230
Data-Base Management 233
Gathering Information Through the UPC and EDI 236
The Marketing Research Process 236
Secondary Data 238
Primary Data 242
Chapter Summary 245
Key Terms 246
Questions for Discussion 246
Web-Based Exercise: Coca-Cola Retailing Research Council 247
Part 3 Short Cases 248
1: The Costco Mindset: Appealing to Consumers' Interest in Quantity Discounts 248
2: 7-Eleven: A New Focus on the Customer (the Guest) 248
3: Testing Channel Formats at Wal-Mart 249
4: Growth Reimagined: Prospects in Emerging Markets 250
Part 3 Comprehensive Case: Starbucks' Customer Appeal 251
PART 4 Choosing a Store Location 255
Chapter 9 Trading-Area Analysis 256
Chapter Objectives 256
Overview 257
The Importance of Location to a Retailer 257
Trading-Area Analysis 258
The Use of Geographic Information Systems in Trading-Area Delineation and Analysis 260
The Size and Shape of Trading Areas 264
Delineating the Trading Area of an Existing Store 266
Delineating the Trading Area of a New Store 267
Characteristics of Trading Areas 270
Characteristics of the Population 273
Economic Base Characteristics 275
The Nature of Competition and the Level of Saturation 277
Chapter Summary 279
Key Terms 279
Questions for Discussion 280
Web-Based Exercise: Site Selection Online 280
Chapter 10 Site Selection 281
Chapter Objectives 281
Overview 282
Types of Locations 282
The Isolated Store 282
The Unplanned Business District 283
The Planned Shopping Center 287
The Choice of a General Location 292
Location and Site Evaluation 292
Pedestrian Traffic 293
Vehicular Traffic 293
Parking Facilities 294
Transportation 295
Store Composition 295
Specific Site 295
Terms of Occupancy 296
Overall Rating 299
Chapter Summary 299
Key Terms 300
Questions for Discussion 300
Web-Based Exercise: MainStreet.org 300
Part 4 Short Cases 301
1: Adapting Store Size to the Type of Location 301
2: Examining Perfumania's Site-Selection Strategy 301
3: Examining Rue 21's Location Strategy 302
4: Coach Expands into China's Tier 2 and Tier 3 Cities 303
Part 4 Comprehensive Case: The Growing Appeal of Nontraditional Retail Locations 304
PART 5 Managing a Retail Business 309
Chapter 11 Retail Organization and Human Resource Management 310
Chapter Objectives 310
Overview 311
Setting Up a Retail Organization 311
Specifying Tasks to Be Performed 312
Dividing Tasks Among Channel Members and Customers 312
Grouping Tasks into Jobs 313
Classifying Jobs 314
Developing an Organization Chart 314
Organizational Patterns in Retailing 315
Organizational Arrangements Used by Small Independent Retailers 316
Organizational Arrangements Used by Department Stores 317
Organizational Arrangements Used by Chain Retailers 319
Organizational Arrangements Used by Diversified Retailers 319
Human Resource Management in Retailing 320
The Special Human Resource Environment of Retailing 322
The Human Resource Management Process in Retailing 324
Chapter Summary 332
Key Terms 333
Questions for Discussion 333
Web-Based Exercise: Macy's, Inc. 334
Chapter 12 Operations Management: Financial Dimensions 335
Chapter Objectives 335
Overview 336
Profit Planning 336
Asset Management 337
The Strategic Profit Model 339
Other Key Business Ratios 340
Financial Trends in Retailing 341
Budgeting 344
Preliminary Budgeting Decisions 345
Ongoing Budgeting Process 346
Resource Allocation 348
The Magnitude of Various Costs 348
Productivity 349
Chapter Summary 350
Key Terms 351
Questions for Discussion 351
Web-Based Exercise: QuickBooks 351
Chapter 13 Operations Management: Operational Dimensions 352
Chapter Objectives 352
Overview 353
Operating a Retail Business 353
Operations Blueprint 353
Store Format, Size, and Space Allocation 353
Personnel Utilization 356
Store Maintenance, Energy Management, and Renovations 358
Inventory Management 360
Store Security 360
Insurance 361
Credit Management 362
Computerization 363
Outsourcing 365
Crisis Management 366
Chapter Summary 366
Key Terms 367
Questions for Discussion 367
Web-Based Exercise: Fifth Gear 368
Part 5 Short Cases 369
1: Predicting Retail Worker Engagement 369
2: Buying Local Cuts Costs for Wal-Mart 369
3: 1-800-Flowers.com Teams with IBM's E-Commerce Platform 370
4: Chico's Steps Up Its Technology 371
Part 5 Comprehensive Case: Automated Retailing: A Driver of Profits and Cost Savings 372
PART 6 Merchandise Management and Pricing 377
Chapter 14 Developing Merchandise Plans 378
Chapter Objectives 378
Overview 379
Merchandising Philosophy 379
Buying Organization Formats and Processes 382
Level of Formality 382
Degree of Centralization 382
Organizational Breadth 383
Personnel Resources 383
Functions Performed 384
Staffing 385
Devising Merchandise Plans 386
Forecasts 386
Innovativeness 387
Assortment 391
Brands 394
Timing 397
Allocation 397
Category Management 398
What Manufacturers Feel About Retailers 399
What Retailers Feel About Manufacturers 399
Merchandising Software 400
General Merchandise Planning Software 400
Forecasting Software 400
Innovativeness Software 401
Assortment Software 401
Allocation Software 401
Category Management Software 401
Chapter Summary 402
Key Terms 403
Questions for Discussion 403
Web-Based Exercise: Planning Factory 404
Chapter 15 Implementing Merchandise Plans 405
Chapter Objectives 405
Overview 406
Implementing Merchandise Plans 406
Gathering Information 406
Selecting and Interacting with Merchandise Sources 408
Evaluating Merchandise 409
Negotiating the Purchase 411
Concluding Purchases 411
Receiving and Stocking Merchandise 412
Reordering Merchandise 414
Re-evaluating on a Regular Basis 416
Logistics 416
Performance Goals 417
Supply Chain Management 418
Order Processing and Fulfillment 418
Transportation and Warehousing 420
Customer Transactions and Customer Service 421
Inventory Management 422
Retailer Tasks 422
Inventory Levels 423
Merchandise Security 423
Reverse Logistics 425
Inventory Analysis 426
Chapter Summary 426
Key Terms 427
Questions for Discussion 427
Web-Based Exercise: Business Solutions Section of the U.S. Postal Service's Web Site 427
Chapter 16 Financial Merchandise Management 428
Chapter Objectives 428
Overview 429
Inventory Valuation: The Cost and Retail Methods of Accounting 429
The Cost Method 430
The Retail Method 432
Merchandise Forecasting and Budgeting: Dollar Control 435
Designating Control Units 435
Sales Forecasting 436
Inventory-Level Planning 439
Reduction Planning 440
Planning Purchases 441
Planning Profit Margins 442
Unit Control Systems 442
Physical Inventory Systems 443
Perpetual Inventory Systems 444
Unit Control Systems in Practice 445
Financial Inventory Control: Integrating Dollar and Unit Concepts 445
Stock Turnover and Gross Margin Return on Investment 446
When to Reorder 447
How Much to Reorder 448
Chapter Summary 449
Key Terms 450
Questions for Discussion 450
Web-Based Exercise: Benchmarking Section of the Retail Owners Institute Web site 451
Chapter 17 Pricing in Retailing 452
Chapter Objectives 452
Overview 453
External Factors Affecting a Retail Price Strategy 455
The Consumer and Retail Pricing 455
The Government and Retail Pricing 457
Manufacturers, Wholesalers, and Other Suppliers—and Retail Pricing 459
Competition and Retail Pricing 460
Developing a Retail Price Strategy 460
Retail Objectives and Pricing 461
Broad Price Policy 463
Price Strategy 464
Implementation of Price Strategy 469
Price Adjustments 474
Chapter Summary 476
Key Terms 476
Questions for Discussion 477
Web-Based Exercise: Neiman Marcus 477
Part 6 Short Cases 478
1: Making McDonald's Recession-Resistant 478
2: The Merchandising of Private Brands 478
3: Destocking as a Strategy 479
4: Cheap Chic from Forever 21 480
Part 6 Comprehensive Case: The Unique Merchandising Strategy of eBay 481
PART 7 Communicating with the Customer 485
Chapter 18 Establishing and Maintaining a Retail Image 486
Chapter Objectives 486
Overview 487
The Significance of Retail Image 488
Components of a Retail Image 488
The Dynamics of Creating and Maintaining a Retail Image 489
Atmosphere 491
A Store-Based Retailing Perspective 491
A Nonstore-Based Retailing Perspective 501
Encouraging Customers to Spend More Time Shopping 503
Community Relations 506
Chapter Summary 507
Key Terms 507
Questions for Discussion 508
Web-Based Exercise: Johnny Rockets 508
Chapter 19 Promotional Strategy 509
Chapter Objectives 509
Overview 510
Elements of the Retail Promotional Mix 510
Advertising 510
Public Relations 516
Personal Selling 518
Sales Promotion 520
Planning a Retail Promotional Strategy 525
Determining Promotional Objectives 525
Establishing an Overall Promotional Budget 527
Selecting the Promotional Mix 528
Implementing the Promotional Mix 529
Reviewing and Revising the Promotional Plan 532
Chapter Summary 533
Key Terms 534
Questions for Discussion 534
Web-Based Exercise: Business Know-How 534
Part 7 Short Cases 535
1: Making Every Day Seem Special 535
2: Shopper Marketing Ramps Up 535
3: Best Buy: Promoting Its Insignia Consumer Electronics Brand 536
4: Coupons in the Digital Era 536
Part 7 Comprehensive Case: Evolving Communication Channels and Tools 538
PART 8 Putting It All Together 543
Chapter 20 Integrating and Controlling the Retail Strategy 544
Chapter Objectives 544
Overview 545
Integrating the Retail Strategy 546
Planning Procedures and Opportunity Analysis 546
Defining Productivity in a Manner Consistent with the Strategy 548
Performance Measures 550
Scenario Analysis 555
Control: Using the Retail Audit 556
Undertaking an Audit 556
Responding to an Audit 558
Possible Difficulties in Conducting a Retail Audit 559
Illustrations of Retail Audit Forms 559
Chapter Summary 561
Key Terms 562
Questions for Discussion 562
Web-Based Exercise: American Customer Satisfaction Index 562
Part 8 Short Cases 563
Case 1: After the Recession: Preparing for a Brighter Retail Future 563
Case 2: Fixing the Gap 563
Part 8 Comprehensive Case: Assessing Best Buy's Long-Term Business Plan 565
Appendix: Careers in Retailing 571
Overview 571
The Bright Future of a Career in Retailing 571
Owning a Business 572
Opportunities as a Retail Employee 572
Types of Positions in Retailing 573
Career Paths and Compensation in Retailing 573
Getting Your First Position as a Retail Professional 575
Searching for Career Opportunities in Retailing 575
Preparing for the Interview 575
Evaluating Retail Career Opportunities 576
Glossary 577
A 577
B 577
C 578
D 579
E 580
F 581
G 581
H 582
I 582
J 582
L 582
M 583
N 584
O 584
P 585
Q 586
R 586
S 587
T 589
U 589
V 589
W 590
Y 590
Z 590
Endnotes 591
Name Index 603
A 603
B 603
C 604
D 604
E 604
F 605
G 605
H 605
I 605
J 606
K 606
L 606
M 606
N 607
O 607
P 607
Q 607
R 607
S 608
T 608
U 609
V 609
W 609
X 609
Y 609
Z 609
Subject Index 611
A 611
B 611
C 611
D 612
E 612
F 613
G 613
H 613
I 613
J 614
K 614
L 614
M 614
N 615
O 615
P 615
Q 616
R 616
S 617
T 618
U 618
V 619
W 619
Y 619
Z 619