Professional Documents
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Theories of Retailing
Theories of Retailing
Theories of Retailing
Chapter - 2
RETAIL ORGANIZATION
Natural selection
According to this theory, retail stores evolve to
meet changes in the micro-environment. The
retailers that successfully adapt to technological,
social, demographic, economic, and political
changes are most likely to grow and prosper.
Merchandise Offering
Variety (breadth of merchandise): wide vs.
narrow
- The number of merchandise categories
Sole proprietorship
Partnership
Joint venture
Limited liability company (public and private)
New areas
Retailers
Retailers
Retailers
Retailers
at freestanding locations
in business-associated locations
in specialized markets
at airports
Methods of customer
interaction
Retail transactions are carried out through face-toface interaction between retailers and customers in
the case of retail stores.
There are certain methods:
Non-store retailers
Electronic retailing like Internet and Mobile
Association of India
Direct selling
Person-to-person selling:
- Party-plan or group presentations
- Multilevel network
Television shopping
Television shopping is retail format where existing and
prospective customers watch a TV programme
demonstrating a product and then place an order for
the same by telephone, e-mail or Internet
Three types of television shopping: cable channels
meant for shopping, infomercials, and direct-response
advertising shown on TV