Module 3: Multi-channel Retailing

Question 1

The basic types of retail channel are:

Answer 1

Store, Catalogs, Internet

Question 2

are retailers that sell merchandise or service through more than one channel.

Answer 2

Multichannel Retailers

Question 3

is a way a retailer sells and delivers merchandise and services to its customers.

Answer 3

retail channel

Question 4

non-store retailers:

Answer 4

Direct mail retailing
Direct Selling
Television home shopping
Vending Machine Retailing

Question 5

1. S T O R E C H A N N E L
   Benefits:

Answer 5

✓ Browsing
✓ Touching and Feeling Merchandise
✓ Cash and Credit Payment
✓ Entertainment and Social Experience
✓ Immediate Gratification
✓ Risk Reduction
✓ Personal Service

Question 6

This is a non-store retail channel in which the retail offering is
communicated to customer through a catalog mailed to customers.

Answer 6

C A T A L O G C H A N N E L

Question 7

Catalog channel certainly
have a number of benefits to offer to customers:

Answer 7

✓ Convenience
✓ Information
✓ Safety
✓ Portability and easy access

Question 8

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.

Answer 8

I N T E R N E T C H A N N E L

Question 9

Benefits of internet channel

Answer 9

✓ Broader Selection
✓ More information to evaluate merchandise
o Virtual Communities
✓ Convenience
✓ Safety
✓ Personalization
✓ Broad and Deep Assortment

Question 10

networks of people who seek information, products, and
services and communicate with one another about specific issues.

Answer 10

Virtual Communities

Question 11

What are the Perceived Risks in Electronic Shopping?

Answer 11

1. The security of credit card transactions on the internet
2. The potential privacy violations.

Question 12

BENEFITS OF HAVING MULTICHANNEL RETAILING:

Answer 12

➢ 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

Question 13

the percentage of total purchases made by a customer from that specific retailer.

Answer 13

Share of Wallet

Question 14

OVERCOMING LIMITATIONS OF AN EXISTING FORMAT:

Answer 14

1. Increasing the assortment of products
2. By providing a low cost, consistent execution
3. Updating current information

Question 15

How will an internet channel overcome its limitation of not providing the Touch-and-Feel Attribute when selling merchandise?

Answer 15

▪ Brands have a significant role
▪ Making use of Technology that will Increase conversion rates
▪ Provide Services

Question 16

the percentage of consumers who buy the products after viewing it.

Answer 16

conversion rates

Question 17

CHALLENGES OF EFFECTIVE MULTICHANNEL RETAILING:

Answer 17

➢ Providing an Integrated Shopping Experience
➢ Supporting M-Commerce
➢ Organizing for Multichannel Retailing

Question 18

The purchase of products through mobile devices

Answer 18

Supporting M-Commerce

Question 19

Organizing for Multichannel Retailing
Several issues must be considered and these are the following:

Answer 19

▪ Centralized Customer Database
▪ Brand Image
▪ Merchandise Assortment
▪ Pricing
▪ Reduction of Channel Migration

Question 20

happens when consumers collect information across different channels and then purchase the product from the competitor.

Answer 20

Channel Migration

Question 21

To reduce channel migration, retailer must:

Answer 21

• 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.

Question 22

Capabilities Needed for Multichannel Retailing:

Answer 22

➢ 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.