Types of Ownership and Retail Strategy Mix

• There are several types of ownership.

Types of Ownership

• Independent retailers are privately owned and have operational flexibility with strong customer relationships.
• Chain stores have multiple locations under the same brand and use economies of scale, with standardized processes.
• Franchises are a hybrid of independent and chain models containing established brand names, that require franchise fees.
• Leased departments are stores within a store, like Sephora inside JCPenney.
• Consumer cooperatives are owned by consumers focused on community benefits.

Destination Retailers

• Destination retailers are sought out by customers, rather than being stumbled upon.
• Examples include IKEA, Bass Pro Shops, and Apple Store.
• Destination retailers have unique merchandise, strong branding, and specialized customer experiences.

Retail Strategy Mix

• A retail strategy mix includes the following considerations.
• Merchandise (product).
• Location.
• Pricing strategy.
• Advertising & promotions.
• Store atmosphere & customer service.
• Retailers must balance these elements to create a competitive advantage.

Wheel of Retailing

• Retailers start with low prices and minimal services, then evolve by adding services and increasing prices.
• New competitors emerge at the lower-price level, causing older retailers to adapt or decline.

Stages of the Retail Life Cycle

• Introduction involves high costs and low profits, such as with pop-up shops.
• Growth involves increased sales and competition, such as with direct-to-consumer brands expanding.
• Maturity involves peak sales and price competition, such as with Walmart and Target.
• Decline involves reduced sales, possible reinvention, such as with Kmart and Sears.

Lifestyle & Demographic Statistics

• Demographics include age, income, education, gender, etc.
• Lifestyle includes interests, values, and behaviors influencing shopping habits.
• Retailers use segmentation to target customers effectively.

Types of Reference Groups

• Aspirational groups are those you want to belong to, such as celebrities and influencers.
• Associative groups are those you are in, such as friends and coworkers.
• Dissociative groups are those you avoid, such as opposing political/social groups.

Elements of Perceived Risk & Marketing Solutions

• Functional risk involves a product that will not perform well, which can be solved by offering warranties.
• Financial risk involves something that is too expensive, which can be solved with discounts and financing.
• Social risk involves fear of judgment, which can be solved with brand endorsements.
• Psychological risk involves guilt (e.g., fast fashion), which can be solved with sustainable messaging.
• Physical risk involves safety concerns, which be solved with certifications and safety tests.

Four Characteristics of Services Retailing

• Intangibility means there is no physical product and can be solved with testimonials & reviews.
• Inseparability means that the product is produced & consumed at the same time, emphasize skilled employees.
• Perishability means services can't be stored, using time-sensitive pricing (e.g., airline tickets).
• Variability means service quality fluctuates, solved with staff training, and service guarantees.

Evaluation of Service Retailers

• Reliability means that the service works as expected.
• Responsiveness includes quick problem-solving.
• Assurance involves trust in the provider.
• Empathy involves personalized attention.
• Tangibles are the appearance of facilities.

Gap Model (Fixing Service Issues)

• Knowledge Gap: Business doesn't know customer expectations, fixed by conducting surveys.
• Standards Gap: Poor service guidelines, fixed by improving training.
• Delivery Gap: Employees don't follow guidelines, fixed by using mystery shoppers.
• Communication Gap: Marketing promises more than reality, fixed by aligning advertising with service.

7 Ps of Service Marketing

• Product is the service being offered.
• Price is how much it costs.
• Place is where service is provided.
• Promotion is how the service is marketed.
• People are the employees delivering the service.
• Process is how the service is delivered.
• Physical evidence are the tangible cues like uniforms, store design.

This lesson explores different types of ownership in retail, including independent retailers, chain stores, franchises, leased departments, and consumer cooperatives. It also highlights destination retailers like IKEA and Apple Stores, which are known for unique merchandise. Furthermore, retail strategy mix considerations like merchandise and location strategies are discussed.