Module 3: Multi-channel Retailing Flashcards
The basic types of retail channel are:
Store, Catalogs, Internet
are retailers that sell merchandise or service through more than one channel.
Multichannel Retailers
is a way a retailer sells and delivers merchandise and services to its customers.
retail channel
non-store retailers:
Direct mail retailing
Direct Selling
Television home shopping
Vending Machine Retailing
- S T O R E C H A N N E L
Benefits:
✓ Browsing
✓ Touching and Feeling Merchandise
✓ Cash and Credit Payment
✓ Entertainment and Social Experience
✓ Immediate Gratification
✓ Risk Reduction
✓ Personal Service
This is a non-store retail channel in which the retail offering is
communicated to customer through a catalog mailed to customers.
C A T A L O G C H A N N E L
Catalog channel certainly
have a number of benefits to offer to customers:
✓ Convenience
✓ Information
✓ Safety
✓ Portability and easy access
This is also called Online Retailing, Electronic and E-tailing, which is
a retail channel in which the offering of products for sale is communicated to customers on the internet.
I N T E R N E T C H A N N E L
Benefits of internet channel
✓ Broader Selection
✓ More information to evaluate merchandise
o Virtual Communities
✓ Convenience
✓ Safety
✓ Personalization
✓ Broad and Deep Assortment
networks of people who seek information, products, and
services and communicate with one another about specific issues.
Virtual Communities
What are the Perceived Risks in Electronic Shopping?
- The security of credit card transactions on the internet
- The potential privacy violations.
BENEFITS OF HAVING MULTICHANNEL RETAILING:
➢ It gives an opportunity to overcome the limitations of their primary existing format
➢ It increases customer satisfaction and loyalty
➢ It’s easy to enter new markets
➢ It enables retailers to gain valuable insights on consumer behavior
➢ It provides a bases for building strategic advantage
the percentage of total purchases made by a customer from that specific retailer.
Share of Wallet
OVERCOMING LIMITATIONS OF AN EXISTING FORMAT:
- Increasing the assortment of products
- By providing a low cost, consistent execution
- Updating current information
How will an internet channel overcome its limitation of not providing the Touch-and-Feel Attribute when selling merchandise?
▪ Brands have a significant role
▪ Making use of Technology that will Increase conversion rates
▪ Provide Services
the percentage of consumers who buy the products after viewing it.
conversion rates
CHALLENGES OF EFFECTIVE MULTICHANNEL RETAILING:
➢ Providing an Integrated Shopping Experience
➢ Supporting M-Commerce
➢ Organizing for Multichannel Retailing
The purchase of products through mobile devices
Supporting M-Commerce
Organizing for Multichannel Retailing
Several issues must be considered and these are the following:
▪ Centralized Customer Database
▪ Brand Image
▪ Merchandise Assortment
▪ Pricing
▪ Reduction of Channel Migration
happens when consumers collect information across different channels and then purchase the product from the competitor.
Channel Migration
To reduce channel migration, retailer must:
• Uniquely relevant information based on proprietary data that the retailer has collected about the customer
• Promote private-label brands that can only be purchased from the
retailer.
Capabilities Needed for Multichannel Retailing:
➢ Develop assortments and manage inventory
➢ Manage people effectively in remote locations
➢ Effectively distribute merchandise to stores
➢ Present merchandise effectively in a printed format and distribute catalogs
➢ Process orders from individual customers electronically
➢ Efficiently distribute merchandise to homes and accept returns
➢ Integrate information systems to provide a seamless customer experience across channels.
