Explain the dimensions by which retailers can be classified. Many different kinds of retailers exist. A retail establishment can be classified according to its ownership, level of service, product assortment, and price. On the basis of ownership, retailers can be broadly differentiated as independent retailers, chain stores, or franchise outlets. The level of service retailers provide can be classified along a continuum of high to low.
Retailers also classify themselves by the breadth and depth of their product assortments; some retailers have concentrated product assortments, whereas others have extensive product assortments. Last, general price levels also classify a store, from discounters offering low prices to exclusive specialty stores where high prices are the norm. Retailers use these latter three variables to position themselves in the marketplace.
1. Form a team of three classmates to identify different retail stores in your city where pet supplies are sold. Include nonstore forms of retailing, such as catalogs, the Internet, or the local veterinarian. Team members should divide up and visit all the different retailing outlets for pet supplies.
Prepare a report describing the differences in brands and products sold at each of the retailing formats and the differences in store characteristics and service levels.
For example, which brands are sold via mass merchandiser, independent specialty store, or other venue? Suggest why different products and brands are distributed through different types of stores.