Author Question: What factors (other than price) do customers place a value on? How can a retailer use these factors ... (Read 95 times)

cool · **on:** Jun 29, 2018

What factors (other than price) do customers place a value on? How can a retailer use these factors to create a differential advantage?

Question 2

In spite of the vastness of the Internet, most online communities are relatively small worlds.

Indicate whether the statement is true or false

quynhmickitran · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Many customers place a high value on attributes other than price when selecting a place to shop. Retailers must understand that nonprice elements of the retail mixmerchandise mix, advertising and promotion, customer services and selling, and store layout and designcan have a significant impact on the quantity of merchandise they sell and the profit levels they achieve. Retailers must be aware that certain nonprice variables will be more successful than others given the market segments they choose to target.
Some of the ways a retailer could use nonprice variables to achieve a protected niche are:
The retailer could position itself as different from the competition by altering its merchandise mix to offer higher-quality goods, greater personal service, special-orders handling, or a better selection of large sizes.
Store positioning is when a retailer identifies a well-defined market segment using demographic or lifestyle variables and appeals to this segment with a clearly differentiated approach.
The retailer can offer private-label merchandise that has unique features or offers better value than do competitors.
The retailer could master stockkeeping with its basic merchandise assortment.
A variation of nonprice competition is to become a destination store for certain products.

Answer to Question 2

True