Multichannel and Omnichannel Retailing Flashcards
Retail Channel
The opportunity to complete a transaction (e.g. stores, internet, mobile, social media, catalogues)
Single-channel retailing
Sell and deliver through only one channel (E.g. Kakaobank, Rolex)
Omnichannel
one perfect, unified operation (online and offline provide the same experience)
Multi channel
Selling and delivering through multiple channels
Cross-channel
In transition between multichannel and omnichannel. Sometimes it’s okay to return online purchases in person, sometimes it’s not
In store retailing
Touch and smell of products
Personal service
Risk reduction (ie. buying jeans in person is less risky)
Immediate gratification
Entertainment and social experience
Cash payment
Gratification
Higher level of satisfaction
Internet retailing
Attributes
Deeper and broader selection
More information for evaluating merchandise
Personalisation
Expanded market presence (market coverage)
Personalisation
Company driven
Customisation
Consumer driven
Opportunities for multi & omnichannel retailers
(Five opportunities)
- Multiple channels to build competitive advantage
- Consumer recognition (rewards and memberships recognised regardless of channel)
- Retailer facilitate finding & picking-up merchandise (less customers in store)
- Various channels need consistency or not? (same price different channels or different prices different channels?)
- Retailers can use channels to stimulate store visits (more customers coming into store)
Challenges facing multi & omnichannel retailers
(Five challenges)
- information systems –> e-commerce (many struggle to provide an integrated experience)
- Brand image –> image transfer (consistent across channels)
- Consistent merchandise assortment across channels (internet channels often have a larger assortment)
- Competition (pricing)
- Showrooming (reduction of channel migration)
