New Year 2011

Salam All...

It is a great pleasure for me to wish all my students a Happy New Year 2011 and may all of you get all the best things in life.

As for me, a student myself in one of Malaysia's finest university in Malaysia, am great-full to Allah Subhanahu wataala for all the tremendous ventures in life that I've experienced last year. My ups and downs really opened my eyes wider to understand the world as it is now.

I hope all can benefit from this blog. Do use it as it is meant to be used. Please do comment if you need more information or updates. I would appreciate all comments and responds. Barokallahu lakuma...

Love

P4720- RETAIL OPERATION 2 FIFO vs. LIFO INVENTORY CONTROL

Notes from RETAILING 6th Edition by DUNNE & LUSCH

FIFO
Stands for First In, First Out and values inventory based on the assumption that the oldest merchandise is sold before the more recently purchased merchandise.

• merchandise on the shelf will reflect the most current replacement price

• During inflationary periods this method allows “inventory profits” (caused by selling the less expensive earlier inventory rather than the more expensive newer inventory) to be included as income.


LIFO
Stands for Last In First Out and values inventory based on the most recently purchased merchandise is sold first and the oldest merchandise is sold last.

• designed to cushion the impact of inflationary pressures by matching current costs against current revenues

• costs of goods sold are based on the cost of the most recently purchased inventory; older inventory is regarded as unsold inventory

• during inflationary period, LIFO method results in the application of a higher unit cost to the merchandise sold and lower unit cost to the inventory unsold

• In rapid inflation most retailers use the LIFO method, resulting in lower profits in income statement, thus lower income taxes

• most retailers prefer LIFO for planning purposes since it accurately reflects replacement cost


Sample Situation
You begin the year by a total inventory of 15 home theaters which you purchased on the last day of the preceding year for RM500 each. If these home theater packages were the only merchandise in stock, your beginning inventory was RM7,500 (15xRM500).
Suppose also that during the year you sold 12 packages for RM900 each, for total sales of RM10,800; that in June you purchased 8 new home theater packages (same make and model as the old ones) at RM525; and in November you bought 4 more at RM550.
Thus, your purchase were RM4,200 in June and RM2,200 in November for total of RM6,400 and you will still have 15 home theater packages in stock at the year end.

LIFO ACCOUNTING METHOD
• Ending inventory = beginning inventory = RM7,500
• We assume the 12 packages sold were the 12 purchased during the year

Calculation:
Net sales
RM10,800 (12xRM900)

Beginning inventory
RM7,500(RM15xR500)

Purchases
RM6,400 (RM4,200 in June+RM2,200 in November = RM6,400)

Goods available
RM13,900 (beginning inventory +purchases)

Ending inventory (end of the year)
RM7,500 (beginning inventory=ending inventory)

Cost of goods sold
RM6,400 [(Goods available - ending Inventory) OR
(RM4,200 in June+RM2,200 in November = RM6,400)]

Gross margin
RM 4,400 (Gross margin= Net sales- Cost of goods sold)


FIFO ACCOUNTING METHOD
• We assume we sold 12 of the original RM500 packages and had 3 left.
• These 3 home theater packages + June + November purchases result in ending inventory of RM7,900 [(3xRM500)+(8xRM525)+(4xRM550)]

Calculation:

Net sales

RM10,800 (12xRM900)

Beginning inventory

RM7,500 (15xRM500)

Purchases

6,400 (RM4,200 in June+RM2,200 in November = RM6,400)

Goods available

RM13,900 (beginning inventory +purchases)

Ending inventory (end of the year)

7,900 [(3xRM500)+(8xRM525)+(4xRM550)]

Cost of goods sold

6,000 (Goods available - ending Inventory)

Gross margin
RM 4,800 (Gross margin= Net sales- Cost of goods sold)

Note:
Retailers are permitted to change its method of accounting only once.




Exercise
Instruction: Fill in the blanks with the correct answers.
1. Read the problem question carefully!
2. Calculate and solve this problem using LIFO and FIFO accounting method. Show your work.
3. Send your work here by using the comment box.
4. Send your work before 12.00a.m tonight (27 August 2010).

You begin the year by a total inventory of 20 home theaters which you purchased on the last day of the preceding year for RM600 each. If these home theater packages were the only merchandise in stock, your beginning inventory was RM12,000 (20xRM600).
Suppose also that during the year you sold 13 packages for RM900 each, for total sales of RM11,700; that in June you purchased 8 new home theater packages (same make and model as the old ones) at RM500; and in November you bought 5 more at RM550.
Thus, your purchase were RM4,000 in June and RM2,200 in November for total of RM6,400 and you will still have 20 home theater packages in stock at the year end.

Retailers are permitted to change its method of accounting only ____________.

All the best ;)
Enjoy the long weekend!!!(After you finish this exercise o.k :P)

DRM5 - Negotiating with Vendors; Bargaining Tips for Retailers

Note: This is not an original post by the administrator but it is useful for P4720-Retail Operation 2 & P4723-Fashion Merchandising

Acknowledgment of primary source.
Shari's Retailing Blog
By Shari Waters, Retailing Guide (for further information please refer and be a member of this blog; http://retail.about.com/od/buyinginventory/tp/vendor_negotiations.htm)

Bargaining is an age-old practice that is still common in the marketplace in many countries today. In the United States, most consumers want to avoid the haggle and will simply accept the price on the tag. It is the successful retailer that has learned how to play the game of give and take with their suppliers. Learn how to negotiate with vendors to receive the best pricing and terms on products with these negotiation tips.

1. Be Prepared

Being prepared and informed is the greatest advantage a retailer can have going into vendor negotiations. Learn as much about the supplier and its products as possible. How do their prices compare to the competition? What level of service do they provide their customers? Vendor negotiation preparation also includes setting goals to determine what you want and what you can live with.

2. Always Tell the Truth

Deception tactics, such as bluffing or falsification, may do more damage than good in the vendor negotiation process. Lying is not only unethical, but it can be difficult to maintain. While being honest, be careful not to give away your bargaining power. It's not necessary to tell everything you know, but when you do tell... tell the truth.

3. Show Your Potential

If you are meeting with a potential vendor for the first time, odds are he/she may know nothing about your company. Begin the negotiation with some history about your retail business. Explain any future expansion plans and let the vendor know how doing business with you will help them.

4. Ask About Incentives

The whole idea behind negotiating with manufacturers and suppliers is to receive the best price, payment terms, advertising allowances and even exclusivity. Start by asking what incentives you qualify for and let the negotiations begin from there. Don't be afraid to ask for what you want.

5. Mention the Competition

It is okay to mention the vendor's competition in the negotiation process but don't disclose any pricing or other confidential details. There is nothing wrong with letting a supplier know their competitor is in a good position, whether it is real or perceived.

6. Find a Fair Compromise

Just like the retailer, the vendor must make a profit to stay in business. Vendor relations should be treated as collaboration rather than conquest. As you negotiate a good deal for your retail business, consider the outcome for the supplier.

7. Think Long Term

Establishing a solid, trustworthy relationship with a supplier can only help your retail business. Vendors, who feel the customer will be loyal, may concede to even more incentives in order to maintain a long-term partnership.

8. Take Your Time

Never feel pressured to buy from a salesman. If you're not satisfied with the negotiating process, ask for time to think about the offer.

9. Get It in Writing

As the negotiation process comes to a close, make sure the offer is put to paper. Don't sign any sales contract unless it matches the verbal agreement.

10. Practice Makes Perfect

Not everyone is a natural negotiator. It takes time to learn when to speak, when to be silent and how to read body language. The more you negotiate and sharpen your skills, the better you'll get.

Especially for Muslimah

Note: image of gems is not of administrator's work


Salam all...

As future retailers, we know that we are going to handle different categories of merchandise. There are cheap and expensive merchandise.

Cheap non-perishable merchandise such as food and plastic ware has to be sold immediately.They are displayed on cheap racks; touched, held, poked and even squeezed by customers. There are times when if any of these items fall on the floor, they will not be picked up or maybe ignored, or swept away and dumped in the garbage can.

Whereas, expensive merchandise such as gem and jeweleries, are always handled with care and kept in very expensive display cabinet, with beautiful lighting and locks. Sometime they are kept away in bullet proof vaults. Customers can only look and admire their beauty from afar; no one can touch, hold, poke or even squeeze these items without permission from the store owner. If these customers have the ability to purchase these item, they will continue to care and handle them with love and care.

I put in this analogy just to poke your mind and hope you start thinking about yourselves.

You, my students are precious gems and jeweleries in my eyes. I hope you see yourselves as I do, insya Allah.

Please refer this site insya Allah...
http://www.facebook.com/#!/photo.php?pid=5456875&fbid=423013721575&id=226669856575

BY THE WAY... THIS IS NOT THE WAY TO GO...

MARKAH PENILAIAN BERTERUSAN RETAIL OPERATION 1, RETAIL OPERATION 2, FASHION MERCHANDISING DAN PEMASARAN 1

P4720 RETAIL OPERATION 2
1 01DRM07F033 -74
2 01DRM07F2001 -91
3 01DRM07F2002 -75
4 01DRM07F2004 -84
5 01DRM07F2005 -80
6 01DRM07F2006 -84
7 01DRM07F2007 -78
8 01DRM07F2008 -81
9 01DRM07F2009 -91
10 01DRM07F2010 -88
11 01DRM07F2015 -86
12 01DRM07F2016 -77

P4723 FASHION MERCHANDISING
1 .01DRM07F033 -67
2 .01DRM07F2001 -77
3 .01DRM07F2002 -76
4 .01DRM07F2004 -80
5 .01DRM07F2005 -72
6 .01DRM07F2006 -78
7 .01DRM07F2007 -76
8 .01DRM07F2008 -81
9 .01DRM07F2009 -82
10 .01DRM07F2010 -77
11 .01DRM07F2015 -74
12 .01DRM07F2016 -66

P1701 PEMASARAN 1
1 .01DRM09F1006 -50
2 .01DRM09F1007 -70
3 .01DRM09F1008 -58
4 .01DRM09F1024 -69
5 .01SPP09F1004 -67
6 .01SPP09F1005 -50
7 .01SPP09F1014 -72
8 .01SPP09F1019 -42
9 .01SPP09F1023 -51
10 .01SPP09F1041 -67
11 .01SPP09F1045 -39
12 .01SPP09F1046 -73
13 .01SPP09F2001 -40
14 .01SPP09F2002 -64
15 .01SPP09F2003 -40
16 .01SPP09F2004 -63
17 .01SPP09F2005 -76
18 .01SPP09F2006 -68
19 .01SPP09F2007 -42
20 .01SPP09F2008 -74
21 .01SPP09F2009 -70
22 .01SPP09F2010 -48
23 .01SPP09F2011 -49
24 .01SPP09F2012 -50
25 .01SPP09F2013 -69
26 .01SPP09F2014 -61
27 .01SPP09F2015 -50
28 .01SPP09F2016 -54
29 .01SPP09F2017 -53
30 .01SPP09F2018 -42
31 .01SPP09F2019 -31
32 .01SPP09F2020 -58
33 .01SPP09F2021 -38
34 .01SPP09F2022 -40
35 .01SPP09F2023 -38
36 .01SPP09F2024 -54
37 .01SPP09F2025 -52
38 .01SPP09F2026 -39
39 .01SPP09F2027 -0
40 .01SPP09F2028 -41
41 .01SPP09F2029 -51
42 .01SPP09F2030 -55
43 .01SPP09F2031 -39
44 .01SPP09F2032 -61
45 .01SPP09F2033 -33
46 .01SPP09F2034 -62
47 .01SPP09F2035 -61
48 .01SPP09F2036 -42
49 .01SPP09F2037 -40
50 .01SPP09F2038 -39
51 .01SPP09F2039 -32
52 .01SPP09F2040 -67
53 .01SPP09F2041 -49
54 .01SPP09F2042 -41
55 .01SPP09F2043 -25
56 .01SPP09F2044 -44
57. 01SPP09F2045 -52


P3719 RETAIL OPERATION 1
1 .01DRM08F2001 -86
2 .01DRM08F2002 -72
3 .01DRM08F2003 -89
4 .01DRM08F2004 -85
5 .01DRM08F2005 -71
6 .01DRM08F2006 -94
7 .01DRM08F2007 -78
8 .01DRM08F2008 -81
9 .01DRM08F2009 -72
10 .01DRM08F2010 -70
11 .01DRM08F2011 -86
12. 01DRM08F2012 -75
13 .01DRM08F2014 -75
14. 01DRM08F2015 -80
15 .01DRM08F2016 -66
16. 01DRM08F2018 -79

Selecting of Merchandise Sources (from Retailing; Dunne & Lusch, 2008)

1. Dependent on retailer’s type of store and merchandise sold:
a. selling history,
b. consumer’s perception of the manufacturer’s or wholesaler’s reputation,
c. reliability of delivery,
d. trade terms,
e. projected markup,
f. quality of merchandise,
g. after sale service,
h. transportation time,
i. distribution center processing time,
j. inventory carrying cost,
k. country of origin,
l. fashionability, and
m. net cost

2. Private label brands
a. increases as the perceived consequences of making a buying mistake decrease
b. increases when the different brands in the category are perceived to have a wide variance in quality
c. decrease in the quality benefits are deemed to require actual trial/experience rather than being assessable through a search of package label information

3. vendor profitability analysis statement : is a tool used to evaluate vendors and shows all purchases made the prior year, the discount granted, the transportation charges paid, the original markup, markdowns, and finally the season-ending gross margin on that vendor’s merchandise.

4. confidential vendor analysis : is identical to the vendor profitability analysis but also provides a three- year financial summary as well as the names, titles, and negotiating points of all the vendor’s sales staff.

5. Retailers can classify vendors into five categories:

a. Class A vendors : are the vendors from whom the retailer purchases large and profitable amount of merchandise. The retailer may distinguish these vendors from others by purchasing a certain minimum quantity from them.
b. Class B vendors : are those that generate satisfactory sales and profits for the retailer.
c. Class C vendors : are those that carry outstanding merchandise lines but do not currently sell to the retailer.
d. Class D vendors : are those from whom the retailer purchases small quantities of goods on an irregular basis.
e. Class E vendors : are those with whom the retailer has had an unfavourable experience.

6. Retailers should indentify the image they want to portray as retailers when merchandising and choosing vendor. They should ask themselves:
a. Where does this product fit into the strategic position that I have staked out for my department?
b. Will I have an exclusive with this product or will I be in competition with nearby retailers?
c. What is the estimated demand for this product in my target market?
d. What is my anticipated gross margin for this product?
e. Will I be able to obtain reliable, speedy stock replacement?
f. Can this product stand on its own, or is it merely a “me-too” item?
g. What is my expected turnover rate with this product?
h. Does this product complement the rest of my inventory?

7. Vendor Negotiation
Negotiation: is the process of finding mutually satisfying solutions when the retail buyer and vendor have conflicting objectives.

Retail buyer must negotiate:
a. price,
b. delivery dates,
c. discounts,
d. shipping terms,
e. exclusivity,
f. guaranteed sales,
g. markdown money,
h. promotional allowances,
i. and return privileges
Manufacturers become increasingly aware of the cost of carrying excess inventory. Both manufacturers and retailers have become more concern with the time value of money and the effect on the cash flow. Buyer puts all the upcoming areas of negotiations and previous agreements in letter form and sends it to vendors before going into market to eliminate any misunderstanding afterward. Buyers must also be familiar with the prices and discounts allowed by each vendor.
Trade discounts: is also referred to as a functional discount and is form of compensation that the buyer may receive for performing certain wholesaling or retailing services for the manufacturers. Often express in a chain, or series such as “list less 40-20-10” which represents a percentage reduction from the list on an item.
Quantity discounts : is a price reduction offered as an inducement to purchase large quantities of merchandise. Three types:
a. noncumulative quantity discount : a discount based on a single purchase
b. cumulative quantity discount : a discount based on total mount purchased over a period of time
c. free merchandise : a discount whereby is offered in lieu of price concessions
Promotional discount : is a discount provided for the retailer performing an advertising or promotional service for the manufacturer
Seasonal discount : is a discount provided to retailers if they purchase and take delivery of merchandise in the off season
cash discount : is a discount offers to the retailer for the prompt payment of bills
2/10 net 30 means 2 percent discount is given if payment is received within 10 days of the invoice date and the net amount is due within 30 days.
In order to obtain more advantage from this discount, retailer/buyer could negotiate:
a. End-of-month (EOM) dating: allows the retailer to take a cash discount and the full payment period to begin on the first day of the following month instead of the invoice date.
b. Middle-of-month (MOM) dating is similar to EOM except the middle of the month is used as the starting date.
c. Receipt of goods (ROG) dating allows the starting date to be the date retailer received the goods
d. Extra dating (Ex) merely allows the retailer extra or free days before the period of payment begin.
e. Anticipation is something that is not widely use nowadays. Anticipation allows a retailer to pay the invoice in advance of the expiration of the cash discount periods and earn an extra discount.

8. Delivery Terms
Another factor in negotiation. This is because it determines the title to the merchandise passes to the retailer, who pays the freight and who is obligated to file damage claims. Three most common shipping terms are:
a. Free on board (FOB) factory : the buyer assumes title at the factory and pays all transportation costs from the vendor’s factory
b. Free on board (FOB) shipping point : the vendor pays the transportation to a local shipping point, but the buyer assumes title at this point and pays all further transportation costs.
c. Free on board (FOB) destination: The vendor pays all transportation costs and the buyer takes title upon delivery.

Tasks can wait, customer's won't

from: http://www.dmsretail.com

Note from me : This is a simple common courtesy everybody in retail should know. Please read carefully...

"Give me a minute" says the Associate...let me see if I understand this.

The other day I walked into a retail store in a busy mall just as it was opening. The doors were completely open. The lone staff member was busily moving fixtures toward the front of the store - those fixtures that have to be moved back at day's end so that the door grills can be closed.

I was holding a cup of coffee and was pulling my briefcase and carrying a purse. I saw an item that caught my eye as I was walking past the store. Isn't that great? The store had a visual display that attracted me - a customer.

I approached the display and realized that I would probably not be able to reach the item comfortably and would likely make a mess if I tried. I turned and asked the young woman working there if the item was merchandised anywhere else in the store so I could have a closer look at it. I should mention that the employee had not yet acknowledged my presence in the store but there is no question she knew I was there.

Her response, delivered without looking at me and in a tone that said ‘you're disturbing me', was "give me a minute". Excuse me? Give you a minute? I don't believe that was the correct response. Perhaps something like "oh yes, they are right over there" or "I'll be happy to get that one down for you" would have been appropriate. I am not an impatient person but

I certainly don't think that I should have to shop on the Associates' schedule. The store was open and the item was available for sale. She should have reacted differently. So, no, I did not give her a minute. I left the store. And just in case you are wondering...I would definitely have made the purchase if things had worked out differently.

The customer in your store is much more important than any task. This is Customer Service 101. If you are not servicing another customer then you have no right to expect someone to "give you a minute" for anything. The customer who is there in your store asking for your help may purchase something. Isn't this what you want? Don't you want to sell your merchandise to customers? It is unbelievable to me that some retailers do not yet understand these simple concepts.

Customers are time starved. Don't make them wait. If you must make them wait, make sure you have a good reason and make sure you explain why they are waiting.

Hang Out for a Second...Enjoy ;o)

These are from a book called Disorder in the American
Courts, and are things people actually said in court, word
for word, taken down and now published by court reporters
that had the torment of staying calm while these exchanges
were actually taking place:

ATTORNEY: What was the first thing your husband said to you
that morning?

WITNESS: He said, 'Where am I, Cathy?'

ATTORNEY: And why did that upset you?

WITNESS: My name is Susan!

____________ _________ _________ _________ _____

ATTORNEY: What gear were you in at the moment of the
impact?

WITNESS: Gucci sweats and Reeboks.

____________ _________ _________ _________ _____

ATTORNEY: Are you sexually active?

WITNESS: No, I just lie there.

____________ _________ _________ _________ _____

ATTORNEY: This myasthenia gravis, does it affect your
memory at all?

WITNESS: Yes.

ATTORNEY: And in what ways does it affect your memory?

WITNESS: I forget.

ATTORNEY: You forget? Can you give us an example of
something you forgot?

____________ _________ _________ _________ ____

ATTORNEY: Do you know if your daughter has ever been
involved in voodoo?

WITNESS: We both do.

ATTORNEY: Voodoo?

WITNESS: We do.

ATTORNEY: You do?

WITNESS: Yes, voodoo.

____________ _________ _________ _________ _____

ATTORNEY: Now doctor, isn't it true that when a person
dies in his sleep, he doesn't know about it until the
next morning?

WITNESS: Did you actually pass the bar exam?

____________ _________ _________ ______

ATTORNEY: The youngest son, the twenty-year- old, how old is
he?

WITNESS: He's twenty, much like your IQ.

____________ _________ _________ _________ ____

ATTORNEY: Were you present when your picture was taken?

WITNESS: Are you shitting me?

____________ _________ _________ _________ __

ATTORNEY: So the date of conception (of the baby) was
August 8th?

WITNESS: Yes.

ATTORNEY: And what were you doing at that time?

WITNESS: getting laid

____________ _________ _________ _________ _____

ATTORNEY: She had three children, right?

WITNESS: Yes.

ATTORNEY: How many were boys?

WITNESS: None.

ATTORNEY: Were there any girls?

WITNESS : Your Honor, I think I need a different attorney.
Can I get a new attorney?

____________ _________ _________ _________ _____

ATTORNEY: How was your first marriage terminated?

WITNESS: By death.

ATTORNEY: And by whose death was it terminated?

WITNESS: Take a guess.

____________ _________ _________ __ ____________

ATTORNEY: Can you describe the individual?

WITNESS: He was about medium height and had a beard.

ATTORNEY: Was this a male or a female?

WITNESS: Unless the Circus was in town I'm going with
male.

____________ _________ _________ _______

ATTORNEY: Is your appearance here this morning pursuant to
a deposition notice which I sent to your attorney?

WITNESS: No, this is how I dress when I go to work.

____________ _________ _________ ________

ATTORNEY: Doctor, how many of your autopsies have you
performed on dead people?

WITNESS: All of them. The live ones put up too much of a
fight.

____________ _________ _________ _________ __

ATTORNEY: ALL your responses MUST be oral, OK? What school
did you go to?

WITNESS: Oral.

____________ _________ _________ _ __________

ATTORNEY: Do you recall the time that you examined the
body?

WITNESS: The autopsy started around 8:30 p.m.

ATTORNEY: And Mr. Denton was dead at the time?

WITNESS: If not, he was by the time I finished.

____________ _________ _____ ____________ ______

ATTORNEY: Are you qualified to give a urine sample?

WITNESS: Are you qualified to ask that question?

____________ _________ _________ ________

And the best for last:

ATTORNEY: Doctor, before you performed the autopsy, did you
check for a pulse?

WITNESS: No.

ATTORNEY: Did you check for blood pressure?

WITNESS: No.

ATTORNEY: Did you check for breathing?

WITNESS: No.

ATTORNEY: So, then it is possible that the patient was
alive when you began the autopsy?

WITNESS: No.

ATTORNEY: How can you be so sure, Doctor?

WITNESS: Because his brain was sitting on my desk in a jar.

ATTORNEY: I see, but could the patient have still been
alive, nevertheless?

WITNESS: Yes, it is possible that he could have been alive
and practicing law.

KARNIVAL SUKAN ANTARA JABATAN PUO

ASSALAMUALAIKUM & SALAM SEJAHTERA,


KEPADA PELAJAR JP BERKAITAN KARNIVAL SUKAN PUO YG AKAN DIADAKAN PADA:

TARIKH: 6-7/3/2010 (SABTU &AHAD)

MASA: 8.00 PG -7.00 PTG

TEMPAT : PADANG DAN GELANGGANG KAMPUS A&B
GREENTOWN MALL (BOWLING)

ACARA:
SEPAKTAKRAW,
BOLA JARING,
BADMINTON,
BOLASEPAK,
BOWLING,
BOLA TAMPAR
PING PONG.
Kepada pelajar yg berminat sila berhubung dengan saya (En Roslan).
KERJASAMA TUAN/PUAN DIUCAPKAN TERIMA KASIH,

MAJULAH SUKAN UNTUK JP

penyelaras sukan jp

DRM 3- RETAIL OPERATION 1 (CHAPTER 5_PRICING & CHAPTER 6_PROMOTION)

Pricing terminology
Can be known as one of the biggest problems faced by small business owners in setting the right price for new product or service. The price needs to cover costs to generate a profit, but must also take account of what competitors are charging and how much customers are willing and able to pay.
Many new business owners are not really clear about costing and pricing terminology and what the definitions mean. This uncertainty can make it difficult to set a price and can affect the preparation of accurate cash flow forecasts and meaningful business plans.

Factors that influence pricing strategies in consumers and government sectors
1) Price Sensitivity
2) Legal Constraint
3) Competition
4) Cost

1) Price Sensitivity
Generally, as the price of a product increase, the sales for the product will decrease because fewer customers feel the product is a good value. Such inflation in current situation, price sensitivity become more important and big issues among the customers. This can be happen because increasing in price and fall in the purchasing power of money. So, retailer must be alert about this situation to maintain in market.

2) Legal Constraint
The rules have been set up by government and must be followed by retailers. The rules is come out to protect customer or maintaining relation in market between retailers and customers. The retailers can be punished if break the rules.
Example of legal like :
1) Such the maximum price of basic food such rice, oil, flour, sugar and salt are determined by
government.
2) The policy market penetration of new product by retailers.
3) Ethical pricing issues

3) Competition
It is the rival in setting price by retailers to attract more customers and become leader pricing in market competition. Retailers can set price above, below or parity with the competition. The chosen pricing policy must be consistent with the retailer’s overall strategy and its relative market position. It is closely related with price sensitivity. Customers will make purchase at other retailers if our price product is more than competitors.
In this case retailers attempt to be low-cost retailer for merchandise it sells. Retailers try to price the products it sells below its competitors. It is more valuable for customers if the product sales in very good quality then can be satisfied customers expectation.

4) Cost
Each retailers want to generate profit from their run business. In setting price, retailers need to be consider about cost before make a pricing. Fixed cost and variable cost are the cost that must be known by retailers. They need to cover these cost and make markup price as not loss in long term.
1.0 State factors influencing pricing strategies of:

Manufacturers

a) Manufacturer set their prices to retailers by estimating final retail prices and then subtracting required retailer and wholesaler profit margin.
b) Usually want a certain image and to enable all retailers, even inefficient ones, to earn profit.
c) Manufacturers dislike gray markets goods since they are often sold at low price by unauthorized dealers.
d) On other hand with EDLP (everyday low price), manufacturer tent to eliminate the special trade allowance designed to encourage retailer to offer price promotion during the year. Wal-Mart and IKEA are among the retailer successfully utilizing.
e) Example cases- in the men’s, apparel industry, the common retail markup is 50 percent of the final price. Thus, man’s shirt retailing at $50 can be sold to the retailer for no more than $25. If a wholesaler is involved, the manufacturer’s wholesale price must be far less than $25.

Wholesalers

a) Wholesale" is the resale (sale without transformation) of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers, or involves acting as an agent or broker in buying merchandise for, or selling merchandise to, such persons or companies.
b) Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.
c) Example retailers (MYDIN)- buy bundle and sell the product in quantity that the retail needs.

Suppliers

a) Can control prices by using exclusive distribution, not selling to price-cutting retails on being its own retailers.
b) Other supplier : employees, fixtures manufacturers, land-lords, and outside parties.
c) Example cases - to get its radios stocked, a new supplier might have to guarantee the $30 suggested retail price. If the retailers cannot sell the radios for $30, the manufacturer pays a refund. Should the retailer have to sell the radios at $25, the manufacturer gives back $5.


Current and potential competitors

a) For competition-oriented pricing a retailer sets its prices in accordance with competitors. The price level of key competitors are studied and applied.
b) Does not required calculation of demand curves or price elasticity. The average market price is assumed t be fair for both the consumer and the retailer. Pricing at the market level does not disrupt competition and therefore does not usually lead to retaliation.
c) Example- retail like supermarkets, fast-food firms, and gas stations may use market pricing due to their competitive industries.

Customary pricing
Excludes all prices alternatives except a single point. The traditional example has been the five-cent candy bar or package of gum with customary prices, sellers adapt the changes in costs, market condition by adjusting product size or quality assuming the buyer would consider paying only one price.

Variable pricing
Marketing strategy that allows a different price to be charged to different customers or at different times. This type of pricing is common among street vendors, antique dealers, and other small, independently owned businesses but is not practical for direct marketers, who rely upon preprinted promotion forms.

One price policy
A policy of offering the same price to every customer

Flexible pricing
A pricing method in which the price charged for some consumer shopping goods and specialty goods and for many industrial products is open to negotiation between buyer and seller; also known as Multiple Pricing and Variable Pricing.

Odd Pricing
Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £6.95 (but not necessarily mathematically odd, it could also be $2.98 or $3.90). The theory is this drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points.

Leader Pricing
Reduction in the price of a high-demand item to get people to come into a retail store or to encourage a direct mail purchase that may inspire additional purchases; also called loss leader pricing. It is believed that once a decision to purchase an item is made, the customer's resistance to purchasing additional items at full price will be lower. Leader pricing can be at or below the seller's own cost. The loss leader is usually a moderately priced item that most people can afford and that has a well-known normal selling price. Supermarkets usually use a staple item such as soap or coffee as a loss leader. Leader pricing may involve a single product or a complete product line.

PRICING TACTICS
Price Lining - Offer a limited number of predetermined price within a merchandise category.
- Example:
A tire store may offer at $69.99, $89.99 and $129.99 that reflect good, better, and best quality
- Customer and retailer can benefit from such as a strategy for several reasons:
. Confusion that often arises from multiple price choices is essentially eliminated. The customer can choose the tire with the low, medium, or high price.
. From the retailer’s perspective, the merchandising task is simplified. That is all product within a certain price line are merchandise together. Furthermore, when going to market, the firm buyer can select their purchase with the predetermined price lines in mind.
. price lining can also give buyers greater flexibility. If a strict formula is used to establish the initial retail price (initial markup), there could be numerous price point.

Multiple unit - Multiple-unit pricing or quantity discounts refer to the practice of offering two or more similar products or services for sale at one lower total price.
- Multiunit pricing is an example of second-degree price discrimination because customer who buy and consume more of a product are presumably more price sensitive and thus attracted by the lower prices if they buy more units.


Markup
Markup is the difference between the retail price and the cost of an item. Appropriate markup is determined to cover all of the retailers operating expenses needed to sell the merchandise and produce a profit for the retailer. For example, sporting goods retailers buy a tennis racket for $75 and sets the retail price at $125, the markup is $50.
The markup percentage:-
Markup percentage = Retail price-Cost of merchandise

Retail price Markdown
Markdown is inevitable to retailers. It is impossible to sell everything that the retailers have purchased.

When to Markdown?
There are two seasons for markdown:-
• Early markdown – early markdown are initiated when either there is a noticeable slow-moving merchandise or a product has been around in the shop for a long time, for example, more than six weeks.
• Late markdown – it will occur when retailers hold a major clearance at the late selling season. The small or prestigious retailers commonly practice late markdowns because they want to preserve the exclusive image of the shop.

How much to markdown? i. Merchandise life cycle
Highly perishable merchandise such as fashion and seasonal product require a larger markdown

ii. The original selling price
Bigger markdown promote more insensitive for customers to visit the shop.

iii. The timing of markdowns
Markdowns are simple because retailers know that they still have time to increase the size of markdown later.

iv. Overstock condition
When the quantity of a product is too huge, and demand for it is clearly slowly, retailers have to increase the size of the markdown in order to enhance the sale.

v. Needs for fund
Inventory represents a major source of funds for retailers.

What types of Markdown to implement?
- Sales
- Coupons
- Premiums

How to avoid and delay markdowns?
- Shift merchandise locations
- Train staff to use innovative selling approaches

Consumers’ Sales promotion techniques
■Price deal: A temporary reduction in the price, such as happy hour
■Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. Two famous examples are Pepsi Stuff and Advantage.
■Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package.
■Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).
■Coupons: coupons have become a standard mechanism for sales promotions.
■Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales
■Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.
■On-shelf couponing: Coupons are present at the shelf where the product is available.
■Checkout dispensers: On checkout the customer is given a coupon based on products purchased.
■On-line couponing: Coupons are available on line. Consumers print them out and take them to the store.
■Mobile couponing: Coupons are available on a mobile phone. Consumers show the offer on a mobile phone to a salesperson for redemption.
■Online interactive promotion game: Consumers play an interactive game associated with the promoted product. See an example of the Interactive Internet Ad for tomato ketchup.
■Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer.
■Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product.

Point-of-sale displays:-
■Aisle interrupter: A sign that juts into the aisle from the shelf.
■Dangler: A sign that sways when a consumer walks by it.
■Dump bin: A bin full of products dumped inside.
■Glorifier: A small stage that elevates a product above other products.
■Wobblers: A sign that jiggles.
■Lipstick Board: A board on which messages are written in crayon.
■Necker: A coupon placed on the 'neck' of a bottle.
■YES unit: "your extra salesperson" is a pull-out fact sheet.
■Kids eat free specials: Offers a discount on the total dining bill by offering 1 free kids meal with each regular meal purchased

Trade promotion

Discount
A straight reduction in price on purchases during a stated period of time
• Also called a price-off, off-invoice or off-list
• The offer encourage dealers to buy in large quantity or carry a new item
• Dealers can use the discount for advertising or for price reductions to their customer

Allowance
Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer’s products in some way
• An advertising allowance compensates retailers for advertising the product
• A display allowance compensates them for using special displays
• Manufacturer may offer free goods, push money(cash or gifts) or free specialty advertising items

Business promotion tools
• Used to generate business leads, stimulate purchase, reward customers and motivate salespeople.

Conventions and trade shows
• Use to promote the products
• Vendors receive many benefits such as opportunities to find new sales leads ,contact customer, introduce new products, meets new customers ,sells more to present customers and educate customers with publications and educate customers with publications and visual materials

Sales contest
• Contest for salesperson or dealers to motivate them to increase their sales performance over a given period
• Sales contest motivate and recognize good company performance ,who may receive trips, cash prizes or other gifts

Rationales Sales Promotion
Consumer Promotion
• To increase short term sales
• Help to build long – term market share

Trade Promotion
• Getting retailers to carry new items and more inventory
• Getting them to advertise the product and give more shelf space
• Getting them to buy ahead

Sales Force
• Getting more sales force support for current or news products
• Getting salespeople to sign up new accounts
• Sales promotions are usually used together with advertising or personal selling
• Consumers promotions must usually be advertised and can add excitement and pulling power to ads
• Trade and sales force promotion support the firm’s personal selling process
• In general, sales promotion should be consumer relationship building
• Rather than creating only short-term sales or contemporary brand switching, they should help to reinforce the product’s position and build long-term relationships with consumers

SALES PROMOTION
Sales promotion is one of the four aspects of promotional mix. (The other three parts of the promotional mix are advertising, personal selling, and publicity/public relations.) Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include:

■contests
■point of purchase displays
■rebates
■free travel, such as free flights

Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmick by many.

Political issues
Sales promotions have traditionally been heavily regulated in many advanced industrial nations, with the notable exception of the United States. For example, the United Kingdom formerly operated under a resale price maintenance regime in which manufacturers could legally dictate the minimum resale price for virtually all goods; this practice was abolished in 1964.

Most European countries also have controls on the scheduling and permissible types of sales promotions, as they are regarded in those countries as bordering upon unfair business practices. Germany is notorious for having the strictest regulations. Famous examples include the car wash that was barred from giving free car washes to regular customers and a baker who could not give a free cloth bag to customers who bought more than 10 rolls

Price deal
Loyal Reward Program
Cents-off deal
Price-pack deal
coupons
rebate


Advertising:
Is often thought of as the paid, non-personal promotion of a cause, idea, product, or service by an identified sponsor attempting to inform or persuade a particular target audience. Advertising has taken many different forms since the beginning of time. For instance, archaeologists have uncovered walls painted in Rome announcing gladiator fights as well as rock paintings along Phoenician trade routes used to advertise wares. From this early beginning, advertising has evolved to take a variety of forms and to permeate nearly every aspect of modern society. The various delivery mechanisms for advertising include banners at sporting events, billboards, Internet Web sites, logos on clothing, magazines, newspapers, radio spots, and television commercials. Advertising has so permeated everyday life that individuals can expect to be exposed to more than 1,200 different messages each day. While advertising may seem like the perfect way to get a message out, it does have several limitations, the most commonly noted ones being its inability to (1) focus on an individual consumer's specific needs, (2) provide in-depth information about a product, and (3) be cost-effective for small companies.

Institutional advertising

Definition 1:
Promotional message aimed at creating an image, enhancing reputation, building goodwill, or advocating an idea or the philosophy of an organization, instead of sales promotion. When employed by a firm to market itself (instead of its products), it is called corporate advertising. Cth: One example of institutional advertising would be Philip and Morris where they promote quitting smoking and a site for support and help on television.
Another example would be alcoholic advertisements encouraging drinkers to not drive drunk.

Definition 2:
Institutional advertising takes a much broader approach, concentrating on the benefits, concept, idea, or philosophy of a particular industry. Companies often use it to promote image-building activities, such an environmentally friendly business practices or new community-based programs that it sponsors. Institutional advertising is closely related to public relations, since both are interested in promoting a positive image of the company to the public. As an example, a large lumber company may develop an advertising theme around its practice of planting trees in areas where they have just been harvested. A theme of this nature keeps the company's name in a positive light with the general public because the replanting of trees is viewed positively by most people.

Promotional advertising

Definition 1:
That is aimed at informing the prospects about special discounts, sale, or schemes.cth: One example of promotion advertising is to advertise the business or cause on an item. Some popular items used are sticky note pads, bags, business card magnets, key chains etc.
this is an excellent form of advertising and creates good branding. You see the company information all over the place, depending on what the item is that was used.

Definition 2:
Cooperative advertising is a system that allows two parties to share advertising costs. Manufacturers and distributors, because of their shared interest in selling the product, usually use this cooperative advertising technique. An example might be when a soft-drink manufacturer and a local grocery store split the cost of advertising the manufacturer's soft drinks; both the manufacturer and the store benefit from increased store traffic and its associated sales. Cooperative advertising is especially appealing to small storeowners who, on their own, could not afford to advertise the product adequately.

Cooperative advertising

Definition 1
Agreement between a manufacturer and a member of distribution chain (distributor, wholesaler, or retailer) under which the manufacturer shares a certain percentage of the member's advertising and promotion costs, or contributes a fixed sum.
Definition 2
Agreement between two or more marketers with complementary products (such as cosmetics and toiletries) or different seasonal sales cycles (such as raincoats and winter coats) to promote or sell each other's products with their own. Also called cooperative marketing or co-marketing.

Advertising Combination Tools
Manufacturers, service companies and distributors are listed in this trusted and comprehensive vertical portal. The comprehensive directory provides access to full contact and ability information for sourcing professionals, engineers and researchers wishing to get information on Advertising Combination Tools.

Kelas hArfiah(mentadabur alquran) muslimah

salam semua.



ana dimaklumkan, isteri mushrif(ustaz) ana telah mendapat kebenaran untuk anjur kelas di masjid sultan azlan.

khas untuk muslimah sahaja. pensyarah dan pelajar sangat dialu2kan


pelajaran adalah.

1> kuliah 7 minit. (membincangkan topik2 pilihan) contoh kewajipan mempelajari alquran sunnah

2> belajar alquran secara harfiah (terjemahan perkataan demi perkataan untuk mengetahui maksud ayat, perkataan dan secara langsung dapat memahami grammer(tajuid)

3> kerangka ajaran islam sebagaimana rujukan alquran sunnah

4> membetulkan pemikiran umat. (ada kalangan umat ideologinya metarialist, sosiolist entah lah ana tak brapa reti) kelas ini akan mengembalikan kita kepada pemikiran ideologi islam.

sila hubungi ana untuk keterangan lanjut. seluruh umat makhluk manusia wanita sangat2 dijemput menyertainya.



masa: belum ditetapkan akan dibincangkan mengikut kesesuaian pelajar. biasanya 2 jam lepas mghrib

tempat. masjid dpn poli

jumlah peserta: booking untuk 50 orang



zainor 0166885564 JMSK

WELCOME BACK DRM 5 JANUARY 2010

WELCOME BACK TO PUO DRM 5 ;o)
WATCH OUT!!!!...
I'M GOING TO DRILL YOU IN
P4720 - RETAIL OPERATION 2 & P4723- FASHION MERCHANDISING
GET YOUR NOTES AND PRACTICE QUESTIONS HERE IN THIS BLOG

RAS ADIBA BT HASANUDDIN
AMNI HAMIZAH BT DZULKARNAIN
SITI AISHAH BT AHMAD PAUZI
NOORBAHIRA BT SHAHFUDDIN
NURFARAHIN BT ABD MANAF
MUHAMMAD HILMI B NORHIZAN
MOHD AZMAN B MAMAT
EDI NOR KHALIS B ABD MAJID
MOHD AZUAN B MAT FIAN
MOHAMMAD SAIFUDDIN B MOHD NASIR
UMMI ATHIRAH BT MOHD YATIM
NORAZARINA BT RAMLEE, &
AMILIA KARTHINA BT ZAINAL ABIDIN ;o)

DRM 4 - PRACTICAL TRAINING

ALL THE BEST FOR DRM 4
ENJOY YOUR PRACTICAL TRAINING ;o)

01DRM08F1001 CHANG WEI LEE
01DRM08F1002 MOHAMAD FADZILLAH BIN OSDON
01DRM08F1003 PUSHPAVATHY A/P VELOO
01DRM08F1004 HAWANIS BINTI ABU BAKAR
01DRM08F1005 NUR AMIRA BT MOHAMMAD IDHAM
01DRM08F1009 AHMAD 'AZIMUDDIN BIN AHMAD KAMAL
01DRM08F1010 NOR HAYATI BINTI ASMAIL
01DRM08F1011 NOR IZATY BINTI JAMALUDDIN
01DRM08F1013 MOHAMMAD HAIRIL FAIZ BIN AZIZAN
01DRM08F1014 AZIAH BINTI AHMAD
01DRM08F1015 SHAFRIN FAZEATI BINTI ABDULLAH
01DRM08F1016 NOOR MASITA SAKBAN BT SAKBAN NUDDIN
01DRM08F1017 TUAN SUHAILAH BINTI TUAN IBRAHIM
01DRM08F1018 NORSYAQIRIN BINTI NORZAM
01DRM08F1019 ZARINA BINTI ABU BAKAR
01DRM08F1020 SAFIAH NAZIHAH BT ABD RAZAK
01DRM08F1024 SITI NORAINUL BINTI SAMINGIN
01DRM08F1025 NUR SYAZANA BT SHAHAR
01DRM08F1027 FATIN FARHANA BINTI HARIF
01DRM08F1028 NUR AZMA BINTI YAACOB
01DRM08F1029 ABDULLAH BINTI MAZLAN
01DRM08F1030 AINN SYAKILLAH BINTI MINHAT
01DRM08F1034 SITI KARIMAH BINTI MD SALLEH
01DRM08F1035 SARASWATHY A/P KRISHNAN
01DRM08F1036 MUHAMMAD FUAD BIN SHAHRUDIN
01DRM08F1037 NORAFIZAH BINTI DAHALAN
01DRM08F1038 MOHD AZIMAN BIN IDRIS

DRM5 - P4720_RETAIL OPERATION 2_GMROI and ABC ANALYSIS

Notes : By Swapna Pradhan (Retailing Management 2nd Edition)

Gross Margin Return on Investment (GMROI) Concept
Many retailers use the performance indication of gross margin % (after mark down) and weeks cover to measure performance. While the gross margin % is a measure of the relative profitability without taking into account, the costs of stockholding investment. Week's cover tells us how effectively, the stock was turned without informing us about the relative profitability. What is needed is a measure that combines these two indicators into an indicator of real profitability.

GMROI is calculated as gross margin/average inventory cost
GMROI is a merchandise planning and decision making tool that assist the buyer in identifying and ecaluating whether an adequate gross margin is being earned by the products purchased as compared to the investment in the inventory required to generate the gross margin. It focuses the buyer's attention on return-on-investment rather on sales as a basis for the merchandising decisions. The focus is on SKU's (stock keeping units) of each individual products rather than department totals and it helps identify product "winners" and core products.
Product winners are those products which perform well, which boost profitability and are the best-return-on-investment products. Core products on the other hand, are the buyer's list of existing winners that can never be out of stock. They're the mostvaluable products in terms of high profitability and their excellent return on investment.

Gross margin is the value of sales less the cost of goods sold. Increasing gross margin entails increasing the sales revenue or reducing the cost of the merchandise. The obvious way to increase sales revenue is simply to increase prices. Unfortunately, in a competitive environment, things are not so easy. The recommended approach is to avoid products that are known value items or those that your competitors focus on for price comparison. Merchandise managers who can effectively inter-relate gross merchandise management and inventory turnover management will be able to achieve high performance results.

ABC Analysis
Pareto (ABC) Analysis (a.k.a 80/20 rule)
ABC Analysis rank orders merchandise by some performance measure to determine which items should never be out of stock, which items should occasionally be allowed to be out of stock and which items should be deleted from a stock selection. An ABC Analysis can be done at any level of merchandise classification , from an SKU to a department.

ABC Analysis utilises the 80:20 priciple, which implies that 80% sales come from 20% of the products. The first step in the ABC Analysis is to rank order SKUs using one or more criteria. The most important performance measure for this type of analysis in contribution margin.

Contibution margin = net sales - cost of goods sold - other variable espenses.

Other variable expenses can included sales comissions.

( l'll include the pareto graph in print form)
The next step is to determine how items with different levels of profit of volume should be treated differently. the buyer defined as A those time that account for 5% of items and represented 70% of sales. B items represent 10% of items and 20% of sales. C items account for 63% of the SKUs but contribute only 10% of sales and D represents those items for which there were no sales in the past seasons.

DRM5- P4720 RETAIL OPERATION 2 (TAKE HOME TEST)

Instructions:
1. Print out these questions.
2. Please do this test by yourself and turn it in in written form.
3. Turn it in at 9 November 2009 before 1.30pm

Question 1
As a store manager, how would you produce a suitable store format for a boutique? (35 marks)

Question 2
As a store manager, list and describe your duties. (15 marks)

Question 3
As a store manager, list the steps before hiring a vendor. Suggest negotiation procedures with your vendors. (15 marks)

Question 4
List the promotional tools discussed in class. Justify which of the promotional tools is suitable for your boutique. (15 marks)

Question 5
Describe ABC Analysis on merchandising. (20 marks)

All the best and you may use all the resources around you. Be creative and innovative whenever suitable for you to do so.
Late submission will not be tolerated.

DRM5 (P4723) CHAPTER 6 - THE RETAILING DEVELOPMENT OF PRIVATE LABELS AND BRANDS

NATIONAL BRANDS

definition
A name, term, sign, symbol or design, or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

national brand
Definition
Brand marketed throughout a national market. National brands are owned and promoted usually by large manufacturers.

WHAT ARE PRIVATE LABELS AND BRANDS
private label/brand
Definition
Brand owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label. Also called private brand.


PRIVATE LABEL AND BRAND ACQUISITION
private label/brand
Definition
Brand owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label. Also called private brand.


AWARENESS OF PRIVATE BRANDS AND LABELS
buying behavior
Definition
Purchase decision making pattern that is a complex amalgam of needs and desires, and is influenced by factors such as the consumer's (1) societal role (parent, spouse, worker, etc.), (2) social and cultural environment and norms, and (3) aspirations and inhibitions.

complex buying behaviour
consumer buying behaviour in situations characterized by high consumer involvement in a purchase and significant perceived differences among brands.
Thus, retailers need to help buyers learn about the attributes and their relative importance. They need to differentiate their brand features, perhaps b describing the brand’s benefits using print media with long copy. They need to motivate store salespeople and the buyer’s acquaintances to influence the final brand choice.

dissonance-reducing buying behaviour
consumer buying behaviour in situations characterized by high involvement but few perceived differences among brands.
Retailers need to counter this dissonance by providing after-sale communications to provide evidence and support to help consumers feel good about their brand choice.

habitual buying behaviour
consumer buying behaviour in situations characterized by low consumer involvement and a few significant perceived brand differences.
Retailers use price and sales promotions to stimulate product trial. In advertising, a few key points should be stressed. Visual symbols and imagery are important because they can be remembered easily and associated with the brand. Ad campaigns should be in the form of repeated short message to condition consumers. They will recall certain product by identifying the product’s symbol.

variety-seeking buying behaviour
consumer buying behaviour in situations characterized by low consumer involvement but significant perceived brand differences.
Retailer may try to encourage habitual buying behaviour by:
• dominating shelf space, keeping shelves fully stocked, and
• running frequent reminder advertising
• offering low prices, special deals, coupons and free samples, and
• advertising reasons for trying something new.