Chapter 11, Problem 1ALC

Summary Introduction

To compare: The two different stores to shop for a product and then shop for online. There are three shopping outlets on product service, assortment and prices. Suppose Person X is going to purchase a product where would he purchases and the reason behind the purchase.

Introduction:

Retailer is an individual or an organization that sells goods or services to its customers, suppliers or wholesalers. Retailers are the people who generally sell goods and services to other business.

Explanation of Solution

The two different stores to shop for a product c are:

Corporate chain: These are the type of retail organization which are owned and organized with two or more outlet.

• Discount stores: This type of stores sell quality goods at low prices by accepting low restrictions and selling upper volume. For example, Person X shops product C, which is of high quality with low prices with more offers and discounts.
• Department stores: These stores carry a huge range of product line. The large size allows the customer more flexible and focuses on the product type they want. For example, the customers can see large variety of available products in C with discounts and good qualities.
• Online shopping: Online shopping can be done through internet which saves time. People can purchase their needs being at home. For example, if Person X wants to purchase Product C online, shopping offers number of similar products, so that customer will have a large variety of choices.

The product assortment, service and prices provided by discount stores are:

• Product service: Discount stores offer different types of goods with high quality. Discount stores maintain strong relationship with the customers by getting feedbacks for their products, giving warrant card for their products and offering free services.
• Product price: The main aim of these stores is to offer their goods at discounted rates to attract the customers which increases their sales.
• Product assortment: These stores deal with different types of products.

The product assortment, service and prices provided by department stores are:

• Product service: A department store helps the customers to purchase all the products under one roof.
• Product price: These stores give many offers, such as buy one get one free on most of the products and sometimes with discount which attracts the customer to buy the product.
• Product assortment: These stores deal with the huge variety of product line as all the goods are available at one place.

The product assortment, service and prices provided by E-tillers or online are:

• Product service: They provide home delivery and can view large variety of similar products being at home or work place.
• Product price: Product prices will wary according to the websites and internet  where the customer has to make a good research on the product and then purchase.
• Product assortment: Online shopping offers all types of goods but the buyer has to log into different websites to find the products.

Person X purchases the products from department store where almost all the variety of goods are available. The customer has the flexibility to choose the product. Even in the modern world, most of the people think that feel and touch of goods meet the customer satisfactory than just by seeing it through eyes.

The departmental stores give seasonal offers to attract the customers and increases their sales which results in high profits.