Chapter 17:17:

Pricing in Retailing

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Figure 17-3: Factors Affecting Retail Price Strategy

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Market Segments by Price Sensitivity (p. 502)

• Economic consumers• Status-oriented consumers• Assortment-oriented consumers• Personalizing consumers• Convenience-oriented consumers

Percentage of Retail Percentage of Cost

10.0 11.1

20.0 25.0

30.0 42.9

40.0 66.7

50.0 100.0

60.0 150.0

70.0 233.3

80.0 400.0

90.0 900.0

Table 17-4: Markup Equivalents

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Figure 17-8: Specific Pricing Decisions

– Everyday Low Pricing

– Yield Management Pricing

– Multiple Unit Pricing

pp. 518-520

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Price Adjustments (pp. 521-522)

• Adaptive mechanism– Markdown– Additional markup– Employee discount

• Early markdown policy• Late markdown policy• Staggered markdown policy• Automatic markdown plan• Storewide clearance

Timing Markdowns (pp. 523-524)

Terms of Sale: Datings

Immediate (COD)

Future

Ordinary

End-of-Month (EOM)

Receipt-of-Goods (ROG)

Advanced

Chapter 17 Discussion Questions: 10

Chapter 1818

Establishing and Maintaining a Retail Image

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Figure 18-2: Elements of a Retail Image

In Seconds…• A shopper should be able to determine a

store’s– Name– Line of trade

–Claim to fame–Price position–Personality

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Atmosphere (pp. 544-545)

• The psychological feeling a customer gets when visiting a retailer

– Store retailer: atmosphere refers to store’s physical characteristics that project an image and draw customers

– Nonstore retailer: atmosphere refers to the physical characteristics of catalogs, vending machines, Web sites, etc.

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Point-of-Purchase Displays (pp. 555-557)

• Assortment display• Theme-setting display• Ensemble display• Rack display• Case display• Cut case• Dump bin

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Figure 18-13: Making the Shopping Experience More Pleasant

Remember Experiential Retailing!

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Community-Oriented Actions

• Make stores barrier-free for disabled shoppers• Show a concern for the environment by recycling

trash and cleaning streets• Support charities• Participate in anti-drug programs• Employ area residents• Run sales for senior citizens and other groups• Sponsor Little League and other youth activities• Cooperate with neighborhood planning groups• Donate money/equipment to schools• Check IDs for purchases with age minimums

Chapter 18 Discussion Questions: 2, 12