Final answer:
Retailers can be classified by product range, pricing strategy, location/accessibility, size and scale, and service level. These classifications impact consumer shopping preferences and retailer business strategies.
Step-by-step explanation:
The five most popular methods of classifying retailers can be understood in the context of changes in consumerism exemplified by the emergence of department stores and their impact on purchasing behavior. Retail classification helps to understand the different types of stores and their strategies in attracting customers.
Here are five methods of classifying retailers:
- By Product Range: Retailers are classified based on the variety of goods they offer, similar to how department stores showcase a wide range of products.
- By Pricing Strategy: Some retailers compete on low prices, while others emphasize premium pricing for luxury goods.
- By Location/Accessibility: Models like the Hotelling Model and the Huff Model analyze how location influences consumer preference to maximize customer footfall.
- By Size and Scale: Retailers vary in size from large supermarkets to smaller boutique shops.
- By Service Level: This includes self-service options like major grocery stores versus full-service providers, which include personalized assistance or bespoke services.
Understanding these classifications can influence where consumers choose to shop and how retailers develop their business models.