Retailing and consumer services at a tipping point. The retail marketing mix and the retail product the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market kotler 1999 the retail marketing mix. Theories of retailing evolution of retailing how old is. Since implementation of theories is largely dependent on social and economic situations, high and low consumer demand may influence retailers to implement one theory over another. Retailing, the merchandising aspect of marketing, includes all activities required to sell directly to consumers for their personal, nonbusiness use. The big difference between wholesale and retail is in the price.
Based on this, the wheel of retailing concept is seen as a cycle and an evolutionary theory and it represents one of the theories of structural change in retailing. When manufacturers like dell computers sell directly to the consumer, they also perform the retailing function. Retailing and etailing integrates the four ps of marketing into the operations of retail and etail businesses. It is the only point in the value chain to provide a platform for promotions. Download theories of communication networks pdf ebook. The retailing product and the product in retailing product based benefits storeproduct service. The wheel of retailing theory is one of most common cyclical development theories.
Larger concentration of stores draw more shoppers and generate more sales. Conflict theories evolution through dialectic process within a broad retail category, there is always a conflict between the retailing of similar formats, which leads to the development of new formats. As the theory involves the beginning represented by one state and return to the same state after some time in the future, the theory is perceived as being cyclical. Clarkson et al 1996 developed theories further and implemented empirical evidence in grocery retailing. Location planning theories in valuation of retail premises. Retailing encompasses selling through the mail, the internet, door todoor visitsany channel that could be used to approach the consumer. Zhou et al online shopping acceptance model consumeroriented view of online shopping in this study. The study specially wanted to define the role of factors associating in individual theories of motivation for motivating consumers to buy or not to buy from a retail store.
Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the final consumer i. Mba retail management notes pdf rm notes smartzworld. Websites a viable alternative to traditional brickandmortar stores. It argues that the past theories of retail change are flawed because they cannot explain retail changes in different markets well, particularly retail changes in emerging markets. It encompasses sale of goods and services from a point of purchase to the. The firm that performs this consumer sellingwhether it is a manufacturer, wholesaler, or retaileris engaged in. Retail management i about the tutorial retail management is an activity of selling products or services to their endusers. The wheel of retailing is the most frequently cited theory of subsequent researchers. Numerous explanations surrounding the manner in which retail companies expand and succeed have been discussed throughout the decades. It is also referred to as the generalspecificgeneral theory. Such theories of retail change have attempted to use past experiences of retail chains to improve current business. Sep 05, 2012 04 theories and classification of retailing 1. It is a process through which goods are transported to final consumers.
Three retailing theories explain how different retail formats emerge, mature and are then replaced by another format. Thus, the new retail formats are evolved through dialectic process of blending two formats. Sorry, we are unable to provide the full text but you may find it at the following locations. Theories in retailing free download as powerpoint presentation. We then present the retailing concept, along with the total retail experience, customer service, and relationship retailing. The theories developed to explain the process of retail development revolve around the importance of competitive pressures, the investments in organizational capabilities and the creation of a sustainable competitive advantage, which requires the implementation of strategic planning by retail organizations growth in retail is a result of understand in market signals and responding, to the opportunities that arise in a dynamic manner.
Relationships between manufacturers and their retailers often hinge on the importance of negotiation and its effects on each partys share of the pie, as well as on. Relevance of theories of motivation in retail business. Retailing in india influencing f actors present indian retail scenario. Theories of retail and identifying retail niches i.
Principles of retailing suzanne fernie bsc, tqfe, dms marketing, mba suzanne is a further and highereducation lecturer in retailing and marketing, specialising in retail environment, retail theories and retail change. While many theories of structural change may be found in the retailing literature they are not without controversy. Retailing encompasses selling through the mail, the internet, doortodoor visitsany channel that could be used to approach the consumer. Out of the various theories, the author wishes to put a few of the theories, which are accepted as universal theories of retailing and are often found being quoted in further research studies. The theories developed to explain the process of retail development revolve around the importance of competitive pressures, the investments in organizational capabilities and the creation of a sustainable competitive advantage, which requires the implementation of strategic planning by retail organizations growth in retail is a result of understand in market signals and responding, to the.
In the entry phase, retailers enter the market with low prices and affordable service to increase market penetration. In our content analysis of 173 journal of retailing articles published during the 20042009 to issue 2 period, we found a total of 377 theoretical incidents, as shown in table 1 also see appendix a. Pdf purpose neither retail formats nor business models are static entities. Clarkson et al 1996 developed theories further and implemented empirical evidence in. As the competition in ecommerce is intensified, it become s more important for online retailers to understand the antecedents of consumer acceptance of online shopping. An important beginning for economic analysis of a business district is. He implies, therefore, that the wheel of retailing can revolve only if the environment is favourable for the successful introduction of a new technique.
Introduction and perspectives on retailing,world of retailing, retail management, introduction, meaning, characteristics, emergence of organizations of retailing types of retailers retail formats, multichannel retailing customer buying behaviour, historical perspective, role of retailing, trends in retailing, fdi in retail problems of. Abargaining theory of distribution channels bargaining between manufacturers and retailers over the terms of trade is an important characteristic of many distribution channels. Retailing is concerned with selling of goods only to the final consumers. Retail life cycle theory wheel of retailing entry phase trading up phase vulnerability phase wheel of retailing retail life cycle conflictual theories polarization theory and bermuda triangle effect dialectic process or melting pot theory dialectic process theory. Classification of the theories environmental theory where a change in retail is attributed to the change in the environment in which the retailers operate cyclical theory where change follows a pattern and phases can have definite identifiable attributes associated with them conflictual theory the. Dec 30, 2017 the wheel of retailing concept was introduced by mcnair from harvard university and it is considered to be more an observation than a theory. The differences between traditional retail operations and e.
A theory of retail institutional change that suggests that retail institutions go from outlets with wide assortments to specialized narrow line store merchants and then back again to the more general wide assortment institution. Retail theories wheel of retailing retail life cycle. The research objective is to gain attention to the relevance of theories of motivation in retail business. One implication of these theories is that retailing is based on agglomeration. Location planning theories in valuation of retail premises shaping the change xxiii fig congress munich, germany, october 8, 2006 315 are the research report by mcgoldrick 1990 and brown 1992. No matter from which point of view we look at this concept, the idea itself intends to describe how the retail institutions transform during their evolutionary life cycles. Attributes of cyclical theory also known as the wheel of retailing from innovators to traditional retailers to mature retailer creates cyclical trends in due course of time constant evolution of the retailers as they start adding products unto confused state thus entailing a negative cycle i. While a retailer may find conflict theory helpful at times of low demand, he or she may find this same retail approach useless when consumer requests are relatively high.
The reason for this is because the added cost of selling merchandise to enduser customerslabor, rent, advertising, etc. Eventually the retailer trades up by improving displays and location, providing credit, delivery and by raising advertising expenditure. It also introduces you to visual merchandising, retail marketing mix, and etailing. Retail marketing session 1 introduction to retailing management, various theories of. Some retailers offer additional services to the retail transaction like personal shopping.
If youre looking for a free download links of theories of communication networks pdf, epub, docx and torrent then this site is not for you. Retailers develop new formats, manage existing formats and. A total of 119 different theories were used across these 173. Scribd is the worlds largest social reading and publishing site. Retailing is the last link in the supply chain that delivers goods to the final consumers. Classification of the theories environmental theory where a change in retail is attributed to the change in the environment in which the retailers operate cyclical theory where change follows a pattern and phases can have definite identifiable attributes associated with them conflictual theory the competition or. Jun 25, 2019 retailing is about displaying products, describing the features and benefits of products, stocking products, processing payments and doing whatever it takes to get the right products at the right price to the right customers at the right time. Retailing is a part of manufacturers overall distribution strategy.
Retailspecific topics in the areas of business operations, merchandising, customer service, and selling are presented. Sales at the retail level are generally in smaller unit sizes. The retail marketing mix and the retail product the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the. Retail life cycle theory wheel of retailing entry phase trading up phase vulnerability phase wheel of retailing retail life cycle conflictual theories polarization theory and bermuda triangle effect dialectic process or melting pot. Theories of retailing free download as powerpoint presentation. Conceptual insights and research priorities with the growing realization that brands are one of a firms most valuable intangible assets, branding has emerged as a top management priority in the last decade. This tutorial introduces you to various concerns of retail business such as retail marketing, space management, and retail operations. Retail management 2 in my whole retailing career, i have stuck to one guiding principle. The retail price is always more than the wholesale price. She has taught retailing at every level in further and higher.
Evidently, retail trade is one that cuts off smaller portions from large lumps of goods. The wholesaler doesnt have to deal with such expenses, which allows him to sell goods at a lower. Chapter 1 describes retailing, shows why it should be studied, and examines its special characteristics. Lesson 1 an overview of retailing introduction the word retail is derived from a french word with the prefix re and the verb tailer meaning to cut again. Improve merchandise offering, better service, higher prices stage 3. This theory explains a cyclic retail evolution pattern, which he had observed with the european and u. The importance of the spatial perspective has carried over to the internet era, despite the fact that electronic commerce has had major impacts on retailing. Invariably, retailing and shopping are used as interchangeable terms. Developing new conceptual frameworks, theories, and measures to understand emerging retailing and service practices to encourage researchers to. Mcnair 1958 propounded the theory of the wheel of retailing. Such knowledge is essential to customer relationship. Importance of generating a critical mass of storesactivities and scale. Aug 19, 2015 theories of retailing cyclical theories wheel of retailing accordian theory evolutionary theories dialectic process natural selection 3. Types of retailers retailers use different retail mixesmerchandise.
The theory suggests that new forms of retailing appear as price cutting, low cost and narrow profit margin operations. Retailing concepts introduction retailing is a convenient, convincing and comfortable method of selling goods and services. Theories of retailing cyclical theories wheel of retailing accordian theory evolutionary theories dialectic process natural selection 3. While several theories have been put forward to explain this progression of retail formats, the development of a global model has proved elusive filser and.
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