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Domain of Retailing

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Overview

What is retailing?

Shift in approach

Retail and development Symbolises consumerism

Consumers derive hedonic utility out of

shopping

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Utilities of Retailing

Bucklin classifies utilities provided by retail

into:

Product availabilityWaiting time

Lot size

Variety

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.refined as

Accessibility

Product assortment

Assurance of product delivery Availability of information and ambience

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Choice of channel based on:

Product information

Product customisation

Product quality assurance Lot size

Assortment

Availability

After sales service

Logistics

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Consumer choice- a function ofvalues

Functional values (economic needs)

Social values (need for belongingness)

Emotional values(psychological needs) Epistemic values ( need for novelty and ego

satisfaction)

Conditional values (need arising out of aparticular condition)

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History of Retailing

Cretans

Phoenicians

Romans 12th century Guilds were formed

13th century fairs and markets

Post 1850 retailing institutions originated inUS

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Theory of Retailing

Three main categories of theory

Environmental theory Cyclical theory

Conflict theory

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Influences of the external environment

Economical

Socio-cultural

Demographic

Technological

Political

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Cyclical theories

Where change follows a pattern and phases

can have definite identifiable attributes

associated with them.

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Most popular Wheel of retailing developed

by McNair in 1958.

McNairs hypothesis attempted to explain the

evolution of retail institutions in a wheel

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Passage

of timeAs time passes,

outlet adds services

As more time passes, outlet

adds still more services

4. New form of outletenters retailing

environment with

characteristics of

outlet in Box 1

1. Outlet starts with:

Low prices

Low margins

Low status

3. Outlet now has:

Still higher prices

Still higher marginsStill higher status

2. Outlet now has:

Higher prices

Higher margins

Higher status

The Wheel of RetailingThe Wheel of Retailing

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Retail accordion

The contraction and expansion of

merchandise is called retail accordion

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Conflict theories

Where the competition or conflict between

two opposite types of retailers, leads to a new

format being developed.

Conflict always exists between operators of

similar formats or within broad retail

categories.

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It can be applied to development of retailing as

follows:

Thesis

Antithesis

Synthesis

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Antithesis Thesis

Synthesis