Multichannel retailers
- those retailers that sell
merchandise or services
through more than one
channel
Benefits offered by Store channel
1. Browsing –
2. Touching and Feeling products -
3. Personal Service – sales associates
still have the capacity of providing
meaningful, personalized service
4. Cash Payment – stores are the only
channel that accepts cash payments
5. Entertainment and Social
Experience – in-store shopping can
be a stimulating experience for
some, providing a break in their daily
routine
6. Immediate Gratification –
allowing the customer to get the
merchandise immediately after
they buy it
7. Risk Reduction – physical
presence of the store assures
them that any problems with the
merchandise will be corrected.
Catalog Channel Benefits
1. Convenience – looking at
merchandise & placing an order
on any day at any time from
almost anywhere
2. Safety – enable customer to
review merchandise & place
orders from a safe environment
– their homes
3. Quality of Visual Presentation –
photographs of merchandise in
catalogs are superior to the visual
information that can be displayed
on a Comp. screen.
Internet Channel
1. Convenience
2. Safety
3. Broader Selection – vast
number of alternatives
available to consumers.
- broader array of retailers.
4. More Info. to Evaluate Merchandise
– the provision of information to
help customers make better
purchase decision
- problem solving
- Vitual communities – network of
people who seeks info., products
& services & communicate with
one another about specific issues
5. Personalization – ability to
personalize the info. for each
customer economically.
- personal service at a low cost
- Personalized Customer
Service – many retailers are
offering live, online chats
online chats – provides customers
with opportunity to click a button
anytime and have an instant
messaging email or voice
conversation with a customer
service rep.
-Personalized Offering – retailers
can personalize their offerings for
each customers.
-Personalization in the future –
- FRED – an electronic agent, a
computer program that locates
and selects alternatives on the
basis of some predetermined
characteristics.
Selling Merchandise with “Touch &
Feel” Attributes – providing
attributes like shirt fits, ice cream
flavor tastes, or perfumes smells
Role of Brands – provide a consistent
experience for customers that helps
overcome the difficulty of not being
able to touch & feel the merchandise
prior to purchase online.
Using Technology – electronic
channels are using technology to
convert touch & feel info. into look
& see.
-use of 3D imaging &/ zoom tech.
Gifts – offers the benefit of saving
your time & effort of packing and
sending the gift.
Perceived Risks in e-Shopping
1. Security of credit card
transactions on the internet
2. Potential privacy violations-
ability to retailers to collect
information about customers’
purchase history, personal info.,
& search behavior.
Four reasons why retailers place
more emphasis on electronic
channels
1. Gives them opportunity to
overcome the limitations of
primary existing format
2. Expand market presence –
reach out new markets
3. Increase ‘share of wallet’ –
percentage of total purchases
made by a customer from the
retailer
4. Provide insights to Customer
Shopping Behavior – provides
valuable info into how/why
customer shop & are dissatisfied
with their experiences.
Skills needed by firms to effectively
operate and realize the benefits of
MCR
1. Developing assortment & managing
inventory
2. Managing employees in distant
locations
3. Distributing merchandise efficiently
from distribution centers to stores
4. Catalogs
5. Web sites
6. Processing orders electronically
7. Efficiently distributing individual
orders to homes
8. Operating communications & info.
systems that provide as seamless
interface with customers throughout
all channels.
Disintermediation – occurs when a
manufacturer sells directly to
consumers, bypassing the
retailers.
- retailers are concerned about
this because manufacturers can
get direct access to their
consumers by establishing a retail
site on the internet.
Which Channel is most Profitable?
Issues in MCR
1. Integrated Shopping Experience –
need to provide features & services
that enhance customer’s experience
across channels.
eg. Return policy, promotions & sale,
cust. can place order online for store
pick up .
2. Brand Image – MCR need to project
the same image to their customers
across all channels
3. Merchandise Assortment –
consumers expect everything they
see in a retailer’s store will also be
available on its websites
4. Pricing – customers expect pricing
consistency across channels
Shopping in the Future
- use of customer database
shared by all channels &
integrated system
- use of body scan image,
RFID, self-check-out,
personalize virtual reality
displays.
Seatwork ¼ yellow pad
1. Why are store-based retailers
aggressively pursuing sales
through electronic channels?
2 . Why are the electronic &
catalog channels frequently
patronized for gift giving?
Research on Customer Buying
Behavior in 1 whole yellow pad
