Research Process:

1. Define Research Problem/objective

2. Determine Expected value of perfect information
3. Research technique and Determine Data Collection method
4. Determine the measurement techniques
5. Research Design/ Sampling
6. Data Processing and Analysis
7. Determine Time And cost
8. Define the ethics of research
9. Prepare the research report

1
Step1: Define Research
Problem/objective
a. PROBLEM DISCOVERY
• Symptom
• Problem
• Decision
b. PROBLEM DEFINITION
• the purpose of the study
• the relevant background information
• what information is needed
• and how it will be used in decision
making
2
c. RESEARCH OBJECTIVES
• Research question:.
• Development of hypotheses
• Research boundaries

3
Hypotheses development
model
Source

•Theory
•Management
experience
•Exploratory
research

Research Research Hypothesis Research

Purpose Question design

Research
Objective

4
• Hypothesis Definition: Tentative
theory or supposition provisionally
adopted to explain certain facts and
guide the investigation of others.
• Types of Hypothesis:
– Null Hypothesis (H0):
– Alternative Hypothesis (HA or H1):

5
 Step2: Determine Expected
value of perfect
• The Valueinformation
of Information
– useful,
– willingness to act on the information.
– The accuracy of the information.
– The level of indecisiveness that would
exist without the information.
– The amount of variation in the possible
results.
– The level of risk aversion.
– The reaction of competitors to any
decision improved by the information.
– The cost of the information in terms of
time and money.
6
• Characteristics of Valuable
Information
– Relevance
– Quality
– Timeliness
– Completeness

7
 Step3: Research Technique and
Determine Data Collection method

• Basic Types of Research

Approaches or Research
Technique
– qualitative research and
quantitative research. 

8
• Difference between Qualitative
&Quantitative research

9
 Data collection technique
or research Technique:
• Sources of Data - Primary and Secondary

• Method of collecting primary data

4. Types of Surveys:
• Face-to-face Interviews
• Mall-Intercept
• Executive Interview
• From-Home Telephone Interview
• Central Location Telephone
• Computer Assisted Telephone Interview
• Mail Surveys
• The Internet

2.–

10
2. OBSERVATION
3
Observation Research

People
People Mystery Shoppers
Watching
Watching
People
People One-Way Mirrors

Types
Types of
of People
People
Observation
Observation Watching
Watching Audits
Research
Research an
anActivity
Activity

Machines
Machines Traffic Counters
Watching
Watching
People
People Passive People Meter

36 11
3. EXPERIMENTATION
4. Diary panels
3. Focus group discussions
(F.G.Ds):
4. Depth interviews

12
13
 Why ConsumersBuy
Fashions
• Communicate with others
• Manage Appearance
• Express Self-Image
• Enhance Ego
• Impress Others

14
What Creates Fashion?

Economic Factors
Sociological Factors

15
 What Affects the Rate Fashion
Spreads?

Advantage

Compatibility

Complexity

Trialability

16
Theories of Fashion
Diffusion
Trickle-Down Theory

Mass Market Theory

Sub Culture Theory

17
Stages in the Fashion Life
Cycle

18
Chapter II – Introduction to
retail
Ajith Kumar C. C
 Manufacturer’s Perspective
The Four P’s of Marketing

Retailers
Retailersare
are part ofthe
part of the
distribution channel
distribution channel
Product

Distribution Price

Promotion

20
 Distribution Channel

PPT 1-4
Distribution Channel

21
Decision Variables for
Retailers
Customer Service

Store Design Merchandise

and Display Assortment
Retail
Strategy
Pricing Location

Communication
Mix
22
Economic Significance of
Retailing
Over $2.5 trillion in annual U.S. sales
-greater than medical care, housing, recreation
combine
Employs 17% of population
-about the same as manufacturing and growing
Management training opportunities
Entrepreneurial opportunities

23
India has joined the elite club of 12 countries with
a trillion dollar economy. The country's GDP
crossed the trillion-dollar mark for the first time in
history when rupee appreciated to below 41-level
against the US greenback yesterday, Swiss
investment bank Credit Suisse said in a report
published on Thursday.
Countries like the US, Japan, Germany, China, UK,
France, Italy, Spain, Canada, Brazil and Russia
have all breached trillion-dollar GDP level in the
past.

24
 Nature of Retail Industry is
Changing

To Today’s Retailer

Mom and Pop Store

25
 Retailing is a High Tech
Industry
- Selling Merchandise over the Internet

- Using Internet to manage supply chains

- Analyze ROS data to tailor assortments to stores

- Computer systems for merchandise planning

26
Hot Topic’s Retail Mix

Customer Service Location

Store Design Merchandise

And Display Retail Strategy Assortment

Communication Pricing
Mix
27
 Macy’s Retail Mix

Customer
Location
Service

Store Design Merchandise

And Display Retail Strategy Assortment

Pricing
Communication
Mix
28
 Macy’s Retail Mix
Location Strategy

Enclosed Malls

Customer
Service

Store Display Merchandise

And Design Assortment

Communication Pricing
Mix 29
 Macy’s Retail Mix
Assortment Strategy

Customer
Service Location

Store Design
and Display
Many Items in
Apparel and
Communication
Soft Home
Mix Pricing

30
 Macy’s Retail Mix
Location
Pricing Strategy
Customer
Merchandise
Service
Assortment

Store Design
and Display

Communication
Mix
Moderate with
Frequent Sales

31
 Macy’s Retail Mix
Customer
Service Location

Communication Mix Store Design

And Display Merchandise
Assortment

Pricing

TV, Newspaper Ads

and Special Events

32
 Macy’s Retail Mix

Store Design and Display

Customer
Service Location

Ring with Displays Merchandise

Assortments

Communication
Mix Pricing

33
Macy’s Retail Mix

Customer Service

Modest
Location

Merchandise
Assortment

Store Design
and Display Pricing

Communication
Mix
34
Wal-Mart’s Retail Mix

Customer Location
Service

Store Design Merchandise

And Display Retail Strategy Assortment

Communication Pricing
Mix
35
 Wal-Mart’s Retail Mix
Location Strategy

Free-standing Stores

Customer
Service

Store Display Merchandise

And Design Assortment

Communication
Mix Pricing
36
 Wal-Mart’s Retail Mix
Assortment Strategy

Customer
Service Location

Large Number
Store Design
and Display
of Categories
Few Items
Communication in Each Category
Mix Pricing

37
 Wal-Mart’s Retail Mix
Location
Pricing Strategy
Customer
Merchandise
Service
Assortment

Store Design
and Display

Communication
Mix Low, EDLP

38
 Wal-Mart’s Retail Mix
Customer
Service Location

Communication Mix
Store Design Merchandise
and Display Assortment

Pricing

TV and Newspaper
Insert Ads

39
Wal-Mart’s Retail Mix

Store Design and Display

Customer
Service Location

Basic, Special
Merchandise
Displays Assortments
for Products
Communication
Mix Pricing

40
Wal-Mart’s Retail Mix

Customer Service

Limited

Location

Merchandise
Assortment

Store Design
and Display Pricing

Communication
Mix
41
Chapter III - Types of Retailers

Ajith Kumar C. C
 Types of Retailers
Food Retailers
Mom and Pop Stores
Convenience Stores
Supermarkets
General Merchandise
Supercenters
Retailers
Department Stores
Specialty Stores
Discount Stores
Category Specialists
Off-Price Retailers
Warehouse Clubs
 Food Retailers

Mom and Pops – Supermarkets

-Cars, highways and TV to build brands
-Knowledgeable customers – self service
-Perishable vs. packaged goods
Big Box Retailers
-Warehouse Clubs
-Supercenters
-Hypermarkets
Convenience Stores
Types of General Merchandise
Retailers
Discount Stores
Specialty Stores
Category Specialists
Home Improvement Centers
Department Stores
Drugstores
Off-Price retailers
Value Retailers
Non-store Retail Formats

Electronic Retailing

Catalog and Direct Mail

Direct Selling

Television Home Shopping

Vending Machines
Types of Nonstore Retailers
 Examples of Service Retailers
Type of Service Service Retail Firms
Airlines American, Delta, British Airways, Singapore Airways
Automobile maint/repair Jiffy Lube, Midas, AAMCO
Automobile rental Hertz, Avis, Budget, Alamo
Banks Citibank, NCNB, Bank of America
Child care centers Kindercare, Gymboree
Credit cards American Express, VISA, Mastercard
Education University of Florida, Babson College
Entertainment parks Disney, Universal Studios, Six Flags
Express package delivery Federal Express, UPS, US Postal Service
Financial services Merrill Lynch, Dean Witter
Fitness Bally’s, Gold’s Gym
Health Care Humana, HCA
Home maintenance Chemlawn, MiniMaid, Roto-Rooter
Merchandise/Service
Continuum
Chapter III – Components of
Merchandising

Ajith Kumar C. C
 Merchandizing -
Components
Analysis

Planning Control

Acquisition Handling
Chapter IV – Theories of
Retail
Ajith Kumar C. C
Theories of Retail Institution
Change
CYCLICAL THEORIES
Wheel of retailing (price/service)
Accordion Theory (assortment)

EVOLUTIONARY THEORIES
Dialectic process (retailer)
Natural selection (customer)
Wheel of Retailing
The Dialectic Process
THESIS
Department store
High margin
Low turnover SYNTHESIS
High price
Full service Discount department
Downtown location store
Plush facilities Average margins
Average turnover
Moderate prices
Limited services
ANTITHESIS
Suburban locations
Discount store Modest facilities
Low margin
High turnover
Low price
Self-service
Source: Reprinted with the permission of
Low rent location Macmillan College Publishing Company from
Spartan facilities Retailing, 4th Edition, by Dale M. Lewison.
Copyright © 1991 by Macmillan
College Publishing Company, Inc.