RETAILING ELEVENTH EDITION
MANAGEMENT
Michael Levy, PhD
Babson College
University of Denver
Dhruv Grewal, PhD
Babson College
BRIEF CONTENTS
SECTION I THE WORLD OF RETAILING
1 Introduction to the World of Retailing 4
2 Types of Retailers 34
3 Digital Retailing 68
4 Multichannel and Omnichannel Retailing 106
5 Consumer Behavior 126
SECTION II RETAILING STRATEGY
6 Retail Market Strategy 160
7 Financial Strategy 194
8 Retail Locations 220
9 Retail Site Location 242
10 Information Systems and Supply Chain Management 268
11 Customer Relationship Management 292
SECTION III MERCHANDISE MANAGEMENT
12 Managing the Merchandise Planning Process 314
13 Buying Merchandise 356
14 Retail Pricing 384
15 Retail Communication Mix 410
SECTION IV HUMAN RESOURCES AND STORE MANAGEMENT
16 Human Resources and Managing the Store 440
17 Store Layout, Design, and Visual Merchandising 474
18 Customer Service 510
SECTION V CASES
Cases 538
Glossary 602
Company Index 617
Name Index 622
Subject Index 632
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CONTENTS
SECTION I THE WORLD OF RETAILING
CHAPTER 1 INTRODUCTION TO THE WORLD Retailing View 1.3: Home Depot Is Winning on Nearly
OF RETAILING 4 Every Metric. How Is It Doing So? 16
What Is Retailing? 6 Accelerated Shifts Due to the COVID-19
Pandemic 18
The Retailer’s Role in a Supply Chain 6
Retailers Create Value 6 Management and Entrepreneurial Opportunities 20
Costs of Channel Activities 7 Management Opportunities 20
Retailers Perform Wholesaling and Production Entrepreneurial Opportunities 20
Activities 8 Retailing View 1.4: Jeff Bezos, Founder
Differences in Distribution Channels around of Amazon 21
the World 9
The Retail Management Decision Process 23
Economic and Social Significance of Retailing 10 Understanding the World of Retailing—
Role in Developed Economies 10 Section I 23
Role in Developing Economies—The Base Developing a Retail Strategy—Section II 24
of the Pyramid 10 Implementing the Retail Strategy—Sections III
Retailing View 1.1: Seeing Opportunities at the Base of and IV 25
the Pyramid 11 Summary 26
Role in Society 11 Key Terms 27
Retailing View 1.2: Whole Foods and John Mackey: Get Out and Do It! 27
The Birth of the Organic Supermarket 14 Discussion Questions and Problems 28
The Growing Importance of Retailing and Retailers 14 Appendix 1A Careers in Retailing 28
Evolution of the Retail Industry 14 Chapter Endnotes 31
Growth of Retail Analytics 15
CHAPTER 2 TYPES OF RETAILERS 34 Retailing View 2.3: High-End Hand-Me-Downs:
Retailer Characteristics 36 The Diverse Drivers of Modern Resale Markets 54
Type of Merchandise 36 Extreme-Value Retailers 55
Variety and Assortment 38 Off-Price Retailers 56
Services Offered by Retailers 39 Retailing View 2.4: Loving the Deals, the Fun, and the
Prices and Cost of Offering Breadth and Depth Convenience of Off-Price Retailers 57
of Merchandise and Services 39 Service Providers That Use Retailing Principles 58
Food Retailers 39 Intangibility 59
Supermarkets 40 Simultaneous Production and Consumption 59
Perishability 60
Retailing View 2.1: Grocery Shopping as . . . ? 41
Supercenters 44 Inconsistency 60
Warehouse Clubs 44 Types of Ownership 60
Convenience Stores 45 Independent, Single-Store Establishments 60
Online Grocery Retailers 46 Corporate Retail Chains 61
Franchising 62
General Merchandise Retailers 47
Department Stores 47 Summary 62
Retailing View 2.2: Experience Marketplaces as Today’s Key Terms 63
Department Store 49 Get Out and Do It! 63
Full-Line Discount Stores 49 Discussion Questions and Problems 64
Category Specialists 50 Chapter Endnotes 64
Specialty Stores 52
Drugstores 53
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CHAPTER 3 DIGITAL RETAILING 68 Retailing View 3.4: TikTok Provides Both a Candy
The 7C Framework of Digital Retailing 69 Challenge and a Candy Solution for One Small
Retailer 87
Core Goals 69
Earned Media 88
Retailing View 3.1: The H&M Website, Designed for
Selling Fast but Also Communicating Transparently 70 Influencer Marketing 89
Context Elements 71 Assessing the Efficacy of Influencers 89
Content 71 Types of Influencers 92
Communication 72 Ethical Considerations for Influencer Marketing 92
Community 73 How Retailers Engage Their Customers 93
Commerce 73 Listen–Analyze–Do Framework 93
Retailing View 3.2: Lemons Are to Lemonade as Retailing View 3.5: Does I and Love and You Love
Distressed Retailers Are to Success for Retail Amazon Attribution? 98
E-commerce Ventures 75 Summary 102
Connection 75
Key Terms 102
Mobile and Social Retailing 76 Get Out and Do It! 103
Mobile Retailing 77 Discussion Questions and Problems 103
Social Media–Based Retailing 80 Chapter Endnotes 103
Retailing View 3.3: Something for Everyone:
Shopping through Facebook Shops 82
TYPES OF MEDIA 85
Paid Media 86
Owned Media 86
CHAPTER 4 MULTICHANNEL AND Challenges Facing Multichannel and Omnichannel
OMNICHANNEL RETAILING 106 Retailers 120
Relative Strengths of Retail Channels 108 Multichannel and Omnichannel Supply Chains
and Information Systems 120
In-Store Retailing 108
Consistent Brand Image across Channels 120
Internet Retailing 109
Merchandise Assortment 120
Retailing View 4.1: Selling Lululemon through Mirror
Pricing 121
Devices 110
Retailing View 4.2: H&M Introduces Real-Time Retailing View 4.4: How Direct-to-Consumer Brands
Product Selling 112 Limit Showrooming 122
Mobile Retailing 114 Reduction of Channel Migration 123
Social Retailing 115 Summary 123
Catalog and Other Nonstore Channels 115 Key Terms 124
Retailing View 4.3: Avon’s App-Driven Digital Strategy 117 Get Out and Do It! 124
Discussion Questions and Problems 124
Opportunities Facing Multichannel and Omnichannel
Retailers 118 Chapter Endnotes 124
CHAPTER 5 CONSUMER BEHAVIOR 126 Types of Buying Decisions 141
The Buying Process 127 Extended Problem Solving 141
Need Recognition 129 Limited Problem Solving 142
Information Search 130 Habitual Decision Making 143
Retailing View 5.1: Ensuring That Best Buy Also Is the Social Factors Influencing the Buying Process 143
Best Information Source 132 The Economy 143
Retailing View 5.2: Consumers Are Learning How to Family 144
Cope with Sales Strategies 135 Reference Groups 145
Evaluation of Alternatives: The Multiattribute Culture 145
Attitude Model 135
Purchasing the Merchandise or Service 140 Retailing View 5.3: How Influencers Became the Face
of Retail Safety 146
Postpurchase Evaluation 141
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Market Segmentation 146 Key Terms 152
Criteria for Evaluating Market Segments 147 Get Out and Do It! 152
Retailing View 5.4: Making a Fairy-Tale Wedding a Discussion Questions and Problems 153
Reality for Fashionable, Plus-Size Brides 148 Appendix 5A Consumer Buying Behavior and
Approaches for Segmenting Markets 149 Fashion 153
Composite Segmentation Approaches 151 Chapter Endnotes 156
Summary 151
SECTION II RETAILING STRATEGY
CHAPTER 6 RETAIL MARKET STRATEGY 160 Global Growth Opportunities 177
What Is a Retail Strategy? 161 Attractiveness of International Markets 177
Definition of Retail Market Strategy 161 Keys to Success in Global Retailing 179
Central Concepts in a Retail Market Strategy 163 Entry Strategies 180
Target Market and Retail Format 163 The Strategic Retail Planning Process 182
Building a Sustainable Competitive Advantage 164 Step 1: Define the Business Mission 183
Relationships with Customers—Customer Loyalty 166 Step 2: Conduct a SWOT Analysis 183
Retailing View 6.1: Burger King’s Growing Appeal to Retailing View 6.4: Hot Topic Is Still Hot 187
Non-Burger Eaters 167 Step 3: Identify Strategic Opportunities 188
Relationships with Suppliers 170 Step 4: Evaluate Strategic Opportunities 188
Efficiency of Internal Operations 170 Step 5: Establish Specific Objectives and Allocate
Retailing View 6.2: Making Technology Personal: Resources 188
How Wayfair Is Leveraging High-Tech Tools to Step 6: Develop a Retail Mix to Implement the
Connect with Consumers 171 Strategy 189
Location 172 Step 7: Evaluate Performance and Make
Adjustments 189
Retailing View 6.3: Madewell’s Multipart, Denim-Led
Success 173 Strategic Planning in the Real World 189
Multiple Sources of Advantage 173 Summary 189
Growth Strategies 174 Key Terms 190
Growth Opportunities 174 Get Out and Do It! 190
Growth Opportunities and Competitive Discussion Questions and Problems 191
Advantage 176 Chapter Endnotes 191
CHAPTER 7 FINANCIAL STRATEGY 194 Evaluating Growth Opportunities 209
Objectives and Goals 196 Profit Margin Management Path 209
Financial Objectives 196 Asset Turnover Management Path 211
Societal Objectives 196 Using the Strategic Profit Model to Analyze Other
Personal Objectives 196 Decisions 212
Strategic Profit Model 197 Setting and Measuring Performance Objectives 213
Profit Margin Management Path 198 Top-Down versus Bottom-Up Process 213
Who Is Accountable for Performance? 214
Retailing View 7.1: Target and Walmart: Examining the
Retail Strategies of Two Very Successful Retailers 199 Performance Objectives and Measures 214
Types of Measures 214
Retailing View 7.2: Calculating the Costs and Profits of
Online Channels 202 Assessing Performance: The Role of
Benchmarks 216
Asset Turnover Management Path 204
Summary 216
Retailing View 7.3: Multilevel Marketing: A Lesson in
Merchandise Management 206 Key Terms 217
Combining the Profit Margin and Asset Turnover Get Out and Do It! 217
Management Paths 207 Discussion Questions and Problems 217
Retailing View 7.4: The Bottom Line of Best Buy’s Chapter Endnotes 218
Progressive Lending Program 208
Implications for Improving Financial
Performance 208
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CHAPTER 8 RETAIL LOCATIONS 220 Retailing View 8.2: Luxury Pop-Ups in Rarified
Types of Retail Locations 221 Settings 232
Store-within-a-Store 233
Unplanned Locations 222
Merchandise Kiosks 233
Freestanding Sites 222
Location and Retail Strategy 233
Retailing View 8.1: Food Trucks Follow Customers
to Work 223 Shopping Behavior of Consumers in Retailer’s
Target Market 234
Urban Locations 223
Main Street 225 Retailing View 8.3: Clustering Together to Appeal to
Fitness Shoppers 235
Shopping Centers and Planned Retail Locations 226 Density of Target Market 236
Convenience, Neighborhood, and Community
Uniqueness of Retail Offering 236
Shopping Centers 227
Power Centers 228 Societal and Legal Considerations 236
Malls 228 Urban Sprawl 237
Lifestyle Centers 229 Opposition to Big-Box Retailers 237
Outlet Centers 230 Zoning 237
Theme/Festival Centers 230 Building Codes 238
Mixed-Use Developments 231 Summary 239
Larger, Multiformat Developments 231 Key Terms 239
Nontraditional Locations 232 Get Out and Do It! 240
Pop-Up Stores and Other Temporary Discussion Questions and Problems 240
Locations 232 Chapter Endnotes 241
CHAPTER 9 RETAIL SITE LOCATION 242 Illustration of Site Selection: Edward Beiner Purveyor of
Evaluating Areas for Locations and Determining the Fine Eyewear 259
Number of Stores in an Area 243 Step 1: Conduct a Competitive Analysis 260
Metropolitan Statistical Area 244 Step 2: Define the Present Trade Area 260
Considerations in Evaluating Store Locations 244 Step 3: Analyze the Trade Area Characteristics 261
Number of Stores in an Area 246 Step 4: Match Characteristics of the Present Trade
Area with Potential Sites 262
Evaluating Specific Sites 248
Site Characteristics 248 Negotiating a Lease 262
Types of Leases 262
Retailing View 9.1: No Flights, No Passengers,
No Retail? 249 Retailing View 9.3: High-Tech Options to Support
Locations within a Shopping Center 251 Location Choices 263
Terms of the Lease 264
Defining Trade Areas 252
Trade Area Definition 252 Retailing View 9.4: A Different Kind of Buyer’s Market:
Retail Tenants Still in Business Demand New Lease
Factors Affecting the Size of the Trade Area 253
Agreements from Landlords 265
Measuring the Trade Area for a Retail Site 254
Summary 265
Sources of Information about Trade Areas 254
Key Terms 266
Retailing View 9.2: How Lululemon’s Flagship Store Get Out and Do It! 266
Reflects Its Location Strategy 256
Discussion Questions and Problems 267
Competition in the Trade Area 258
Chapter Endnotes 267
Estimating Potential Sales for a Store Site 258
Regression Analysis 258
Analog Approach 259
CHAPTER 10 INFORMATION SYSTEMS Retailing View 10.1: When a Differentiation Advantage
AND SUPPLY CHAIN Becomes a Supply Detriment: Wendy’s Limited Fresh
MANAGEMENT 268 Beef Supplies 273
Creating Strategic Advantage through Supply Chain Higher Return on Assets 274
Management and Information Systems 270 The Flow of Information through a Supply Chain 274
Strategic Advantage 271 Data Warehouse 276
Improved Product Availability 272
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Vendor-Managed Inventory and Collaborative Retailing View 10.3: Collaborating More Widely to
Planning, Forecasting, and Replenishment 276 Provide Expanding Shipping 286
Drop Shipping 286
The Flow of Merchandise through a Supply Chain 277
Distribution Centers versus Direct Store Customer Store Pickup 287
Delivery 277 Reverse Supply Chain 287
The Distribution (or Fulfillment) Center 279 Retailing View 10.4: Amazon Returns Are Getting
Retailing View 10.2: The IKEA Way 282 Easier—and More Environmentally Friendly 289
Inventory Management through Just-in-Time Summary 289
Inventory Systems 283 Key Terms 290
System Design Issues and Trends 284 Get Out and Do It! 290
Outsourcing Supply Chain Functions 284 Discussion Questions and Problems 290
Pull and Push Supply Chains 284 Chapter Endnotes 291
Radio Frequency Identification Devices 285
Supply Chain for Fulfilling Catalog and
Internet Orders 285
CHAPTER 11 CUSTOMER RELATIONSHIP Retailing View 11.2: More Ways to Earn and Pay with
MANAGEMENT 292 the Starbucks Loyalty App 303
The CRM Process 294 Implementing CRM Programs 303
Retailing View 11.1: At Wegmans, Love Equals Customer Pyramid 303
Loyalty 295 Customer Retention 304
Overview of the CRM Process 295
Retailing View 11.3: Chatbots Respond Just in
Collecting Customer Shopping Data 296 Time 305
Data Warehouse 296 Retailing View 11.4: Etsy Enhancing Community
Identifying Information 297 Relationships 307
Privacy and CRM Programs 297 Customer Conversion: Making Good Customers
into Best Customers 307
Analyzing Customer Data and
Dealing with Unprofitable Customers 308
Identifying Target Customers 298
Identifying the Best Customers 298 Summary 308
Retail Analytics 299 Key Terms 309
Get Out and Do It! 309
Developing CRM through Frequent-Shopper
Programs 300 Discussion Questions and Problems 310
Effectiveness of Frequent-Shopper Programs 300 Chapter Endnotes 310
Making Frequent-Shopper Programs More
Effective 301
SECTION III MERCHANDISE MANAGEMENT
CHAPTER 12 MANAGING THE MERCHANDISE Forecasting Category Sales 327
PLANNING PROCESS 314 Forecasting Staple Merchandise 327
Merchandise Management Overview 316 Forecasting Fashion Merchandise Categories 327
The Buying Organization 316
Retailing View 12.3: Wrapping AI in a Comfy Quilt of
Merchandise Category—The Planning Unit 318 Reassurance and Information 330
Evaluating Merchandise Management Sales Forecasting for Service Retailers 330
Performance 319
Developing an Assortment Plan 331
Retailing View 12.1: In Cutting Out Category Captains, Category Variety and Assortment 331
Grocers Are Making Their Own Shelf Decisions 320
Determining Variety and Assortment 332
Improving GMROI 322
Retailing View 12.4: Expanding the Product Line,
Merchandise Planning Processes 323 Condensing Storefronts: The Gap Brands’ Plan 333
Types of Merchandise Management Planning
Systems 324 Setting Inventory and Product Availability Levels 335
Model Stock Plan 335
Retailing View 12.2: Casually Reshaping Fashion
Product Availability 335
Merchandising 325
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Establishing a Control System for Managing Evaluating the Assortment Plan Using ABC
Inventory 336 Analysis 344
Control System for Managing Inventory of Staple Summary 346
Merchandise 336
Key Terms 347
Control System for Managing Inventory of Fashion
Merchandise 340 Get Out and Do It! 348
Discussion Questions and Problems 348
Allocating Merchandise to Stores 341
Appendix 12A Merchandise Budget Report and
Amount of Merchandise Allocated 342
Open-to-Buy System for a Fashion Merchandise
Type of Merchandise Allocated 342 Category 349
Timing of Merchandise Allocation 343 Chapter Endnotes 354
Analyzing Merchandise Management
Performance 344
Evaluating the Merchandise Plan Using Sell-Through
Analysis 344
CHAPTER 13 BUYING MERCHANDISE 356 Strategic Relationships 371
Brand Alternatives 357 Defining Strategic Relationships 371
National Brands 357 Retailing View 13.3: Walgreens and Kroger Create a
Store Brands 358 Procurement Alliance 372
Generic Brands 359 Building Partnering Relationships 373
National Brands or Store Brands? 359 Maintaining Strategic Relationships 373
Retailing View 13.1: You Might Find Lots at Costco, but Legal, Ethical, and Social Responsibility Issues for
You Won’t Find Kirkland Signature Anywhere Else 361 Buying Merchandise 374
Legal and Ethical Issues 374
Buying National-Brand Merchandise 362
Meeting National-Brand Vendors 362 Retailing View 13.4: Beautiful, Sustainable, and
National-Brand Buying Process 363 Conscious: Setting New Standards for Cosmetics
at Ulta 378
Developing and Sourcing Store-Brand Corporate Social Responsibility 378
Merchandise 364
Developing Store Brands 364 Summary 379
Sourcing Store-Brand Merchandise 364 Key Terms 380
Get Out and Do It! 380
Retailing View 13.2: Making Made in America into a
Viable Retail Strategy 365 Discussion Questions and Problems 381
Chapter Endnotes 381
Negotiating with Vendors 367
Knowledge Is Power 367
Negotiation Issues 368
Tips for Effective Negotiating 369
CHAPTER 14 RETAIL PRICING 384 Retailing View 14.3: Is Crazy Cazboy’s Really Crazy, or
Pricing Strategies 386 Does Its Pricing Method Make All the Sense in the
World? 400
High/Low Pricing 386
Everyday Low Pricing 386 Pricing Techniques for Increasing
Sales and Profits 400
Advantages of the Pricing Strategies 387
Dynamic Pricing 400
Setting Retail Prices 387
Retailing View 14.4: Disney: Dynamically Pricing the
Customer Price Sensitivity 388 Happiest Place on Earth 401
Retailing View 14.1: Panera Bread: Subscribing to Your Promotional Markdowns 402
Daily Dose of Caffeine 390 Clearance Markdowns for Fashion Merchandise 402
Competition 390 Coupons 402
Pricing of Services 391 Price Bundling 402
Using Analytical Tools to Set Prices 392 Quantity Discounts 403
Retailing View 14.2: The Motives for Managing Zone Pricing 403
Merchandise and Marking Down Money 396 Leader Pricing 403
Markdowns 397 Price Lining 403
Reasons for Taking Markdowns 397 Odd Pricing 403
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Legal and Ethical Pricing Issues 404 Summary 405
Deceptive Reference Prices 404 Key Terms 406
Predatory Pricing 405 Get Out and Do It! 406
Resale Price Maintenance 405 Discussion Questions and Problems 407
Horizontal Price Fixing 405 Chapter Endnotes 407
Bait-and-Switch Tactics 405
CHAPTER 15 RETAIL COMMUNICATION Retailing View 15.4: Pop-Ups as Digital POP Displays
MIX 410 on Amazon 423
New Media Elements 413 Personal Selling 423
Online Media 413 Public Relations 423
Retailing View 15.1: Unboxing Communication Potential Planning the Retail Communication Program 425
on Walmart’s Websites 414 Establish Objectives 425
Social Media 415 Determine the Communication Budget 427
Retailing View 15.2: Sharing, Shopping, Sustaining: Allocate the Promotional Budget 430
Retail Bazaars and Social Communities 416 Implement and Evaluate Communication
Traditional Media Elements 418 Programs—Three Illustrations 431
Mass Media Advertising 418 Summary 435
Sales Promotions 420 Key Terms 435
Retailing View 15.3: Cutting Coupons? Nope, Cutting Get Out and Do It! 435
Paper Coupons out of Promotional Strategies 421 Discussion Questions and Problems 436
In-Store Marketing/Design Elements 421 Chapter Endnotes 436
SECTION IV HUMAN RESOURCES AND STORE MANAGEMENT
CHAPTER 16 HUMAN RESOURCES AND Store Maintenance 460
MANAGING THE STORE 440 Inventory Shrinkage 460
Acquire and Retain Human Resources 442
The Organization Structure for a Retail Firm 461
Recruit Retail Employees 442
Organization of a Single-Store Retailer 461
Retailing View 16.1: A Retail Performance Analysis, Organization of a National Retail Chain 463
Based on Recruiting and Hiring Efforts 443
Human Resource Management Legal Issues 465
Train and Acculturate Employees 446
Equal Employment Opportunity 465
Motivate Employees 448
Compensation 466
Retailing View 16.2: Especially Thankful for a Job
Labor Relations 466
This Year 450
Employee Safety and Health 466
Evaluate Employees 450
Sexual Harassment 466
Reward and Compensate Employees 453
Retailing View 16.5: Avoiding Labor Laws by Using
Leadership 456
Technology to Replace Human Cashiers 467
Leader Decision-Making Style 456
Employee Privacy 468
Retailing View 16.3: A Team-Oriented Employment
Summary 468
Model in Walmart Stores 457
Maintaining Morale 458 Key Terms 469
Get Out and Do It! 469
Controlling Costs 458
Discussion Questions and Problems 469
Labor Scheduling 458
Chapter Endnotes 470
Retailing View 16.4: Deep Brew and Deep Insights into
Scheduling 459
CHAPTER 17 STORE LAYOUT, DESIGN, AND Retailing View 17.1: The Protections and Problems of a
VISUAL MERCHANDISING 474 Cashless Market Economy 477
Store Design Objectives 476 Retailing View 17.2: Goosing the Store Design for More
Implement the Retail Strategy 476 Fun and Adventure 478
Build Loyalty 476 Increase Sales on Visits 479
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Control Costs to Increase Profits 479 Fixtures 498
Meet Legal Considerations—Americans with Presentation Techniques 499
Disabilities Act 479
Creating an Appealing Store Atmosphere 501
Design Trade-Offs 480
Lighting 501
Store Design Elements 481 Color 502
Layouts 481 Music 502
Signage and Graphics 484 Scent 502
Feature Areas 486 Taste 503
Store Exteriors 488 Just How Exciting Should a Store Be? 503
Space Management 491 Retailing View 17.4: What Is Amazon Trying to Achieve
Space Allocated to Merchandise Categories 491 with Its Newest Experiment, a Hair Salon? 504
Location of Merchandise Categories 492 Summary 505
Retailing View 17.3: Getting Consumers into the Key Terms 506
TerraCycle Loop by Designing Stores for Container Get Out and Do It! 506
Returns 494
Discussion Questions and Problems 507
Determining Store Size 497
Chapter Endnotes 507
Visual Merchandising 498
CHAPTER 18 CUSTOMER SERVICE 510 Setting Service Standards: The Standards Gap 524
Balancing Customer Service: Personalization versus Meeting and Exceeding Service Standards: The
Standardization 512 Delivery Gap 526
Personalized Service 512 Communicating the Service Promise: The
Standardized Service 513 Communication Gap 528
Customer Evaluations of Service Quality 514 Use Technology 529
Perceived Service 514 Retailing View 18.4: Service-Providing Retail
Role of Expectations 517 Robots 531
Retailing View 18.1: Won’t You Visit Your Neighbor? Service Recovery 531
Staycations and Travel Services in the Pandemic 518 Listening to Customers 532
The Gaps Model for Improving Retail Customer Providing a Fair Solution 532
Service Quality 519 Resolving Problems Quickly 533
Retailing View 18.2: How Appealing to Women Has Summary 533
Helped Home Depot 520 Key Terms 534
Knowing What Customers Want: The Knowledge
Get Out and Do It! 534
Gap 520
Discussion Questions and Problems 534
Retailing View 18.3: Gaining Insights in the Moment,
Chapter Endnotes 535
Using It on the Site 523
SECTION V CASES
1. Get It, Go, Just Walk Out: Amazon’s Proposed 7. Home Depot Is Winning on Nearly Every Metric.
Reinvention of the Checkout Process 540 How Is It Doing So? 547
2. Making Technology Personal: How Wayfair Is 8. Walmart and Grocery Delivery 548
Leveraging High-Tech Tools to 9. “A Blooming Company” 549
Connect with Consumers 541
10. Blue Tomato: Internationalization of a
3. Making Macy’s Meaningful: Moves by the Retail Multichannel Retailer 551
Chain to Maintain Its Competitiveness 542
1 1 . Staples, Inc. 553
4. Find “Good Stuff Cheap” at Ollie’s Bargain
12. Daily Table 554
Outlet 543
13. Remixing a Green Business: The Green
5. Tractor Supply Company Targets the Part-Time
Painter 556
Rancher 545
14. Ashley Stewart 557
6. Fast Fashion and Fast Digital Upgrades by
H&M 546 15. The Decision-Making Process for Buying a
Bicycle 559
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16. McDonald’s—A Global Giant 560 33. Pizza Players, Pizza Prices 587
1 7. The Coffee Wars 562 34. Mel’s Department Store under New
1 8 . A True Platform for Sellers: How Alibaba Is Trying Management 590
to Take Over the World 563 35. Developing an Assortment Plan for Hughes 591
1 9. Parisian Patisserie “Maison Ladurée” Goes 36. Preparing a Merchandise Budget Plan 591
Global 564 37. American Furniture Warehouse Sources
20. Retailing in India: The Impact of Globally 593
Hypermarkets 565 38. How Much for a Good Smell? 594
21 . Diamonds: From Mine to Market 567 39. Promoting a Sale 594
22. Starbucks’s Expansion into China 570 40. Target Marketing with Google AdWords 595
23. Planet Fitness: Pricing for Success 573 4 1 . A Stockout at Discmart 596
24. Tiffany and TJX: Comparing Financial 42. Yankee Candle: Product Management and
Performance 574 Innovation 597
25. Choosing a Store Location for a Boutique 575 43. Interviewing for a Management Trainee
26. Hutch: Locating a New Store 575 Position 598
27. Understanding Grubhub’s Service Quality 580
28. Zara Delivers Fast Fashion 581 Glossary 602
29. Avon Embraces Diversity 583 Company Index 617
30. Sephora Loyalty Programs: A Comparison Name Index 622
between France and the United States 584 Subject Index 632
31. Attracting Generation Y to a Retail Career 586
32. Active Endeavors Analyzes Its Customer
Database 587
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