Chapter 14: Channel Strategy

Question 1

multi-channel approach

cross-channel approach

omnichannel approach

Answer 1

• The multi-channel approach is based on the principle that a customer is served from within a channel: different channels could be used for each subsequent purchase, but the starting point is that a customer can be served entirely from within a given channel.
• The cross-channel approach is still based on serving a customer, but here this can be done from multiple integrated channels. However, the theoretical idea remains that the customer still experiences the channels as separate.
• The best solution when it comes to channel selection should then be an omnichannel approach. The customer no longer experiences the channels, but only the retail brand or formula with which they are in contact.

Question 2

from e-commerce to e-strategy

good e-strategy is:

Answer 2

• multi channel
• multi touchpoint
• multi perspective
• multi format

Question 3

Successful e-strategies address the need for

Answer 3

efficiency and convenience by lowering search costs, increasing supply and expanding distribution options. Customers who buy through different channels create a large wallet share.

• When a retailer offers more products and services, this leads to larger share with customer
• Offering complementary propositions is another source for creating customer value

Question 4

Determining an e-strategy also involves choosing the right online location choices. Online, in addition to e-commerce via their own website, we distinguish three different ‘locations’ that require a different approach and management from a retailer.

Answer 4

• A retailer chooses to sell his goods via websites of other e-commerce players called p-commerce. We compare such platforms with a shopping centre in the physical world.
• Products sold via social media are called s-commerce
• The last one is m-commerce, the mobile form. This can occur in app form but also as an adaptive website.

Question 5

From an operational point of view, there are actually only two channels but there are multiple touchpoints to have customer interactions. Bell, Gallino and Moreno (2014) indicate that the customer’s needs must be considered. In their view, a retailer solves two issues for a customer: the need for information and the need for products. This gives us the

Answer 5

Information & product-fulfilment matrix

Question 6

Information & product-fulfilment matrix

Answer 6

The information- and product-fulfillment matrix helps to determine the channel selection strategy, in which the customer is taken as the starting point. Retailers can be active in one or more quadrants, and even in all four.

Question 7

Information-fulfilment: offline

product-fulfilment: pick-up

Answer 7

traditional retailers

1. primark, action, decathlon, hunkemoller

Question 8

Information-fulfilment: online

product-fulfilment: pick-up

Answer 8

shopping and delivery hybrid

2. IKEA, amazon (which is opening shores), decathlon, hunkemoller

Question 9

Information-fulfilment: offline

product-fulfilment: delivery

Answer 9

online retail plus showroom

3. bonobos, trunk club

Question 10

Information-fulfilment: online

product-fulfilment: delivery

Answer 10

pure-play e-commerce

4. asos, zalando, wehkamp, fonQ

Question 11

According to Nueno (2013) there are 5 advantages of serving customers via both channels:

Answer 11

1. Better service and customer satisfaction by multi channelling
2. A larger share of wallet
3. Greater flexibility in the procurement of goods
4. Knowledge and process transfer
5. Easy entry into new markets

Question 12

omnichannel & sales

Answer 12

uplift - when having online and offline customer spends more in both so creates loyalty

Question 13

multi perspectives

Answer 13

ecom part of 1 function vs e-com all functions involved

e-com is pull vs traditional retal is in general push

e-com customer dominant vs retail purchasing dominant