Types of General Merchandise Retailers

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 hapter 3

Multi-hannel
Multi-
Retailing

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 The Multi-hannel Retailer

  

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 why are Retailers Using Multiple hannels
to Interact with ustomers?

‡ ustomer want to interact in different

ways
‡ Each channel offers a unique set of
benefits for ustomers

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Unique Benefits Provided by Store hannel

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 Benefits Provided by atalog hannel



 


 
 

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 Unique Benefits Provided by Internet
hannel
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 Internet Users Across the Globe

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 Illustration - Radha- Part 1

Radha sits in front of her home electronic center reviewing her

engagement calendar displayed on her TV screen. She sees
that she has accepted an invitation to a formal cocktail party on
Friday night and decides to buy a new dress for the occasion.
She switches to her personal electronic shopper, SOHA, and
initiates the following exchange:
/0: Do you wish to browse, go to a specific store, or buy a
specific item?
: Specific item.
/0: Type of item?
: Black dress.
/0: Occasion? (menu appears on screen)
: Formal cocktail party

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 Illustration ± Radha - Part 2

/0: Price range? (menu appears)

: Rs. 300 Rs. 500
/0: 497 items have been identified. How many do you want to
review?
: 5
Five pictures of Radha in each dress appear on the screen with the
price, brand name, and the IHS retailer selling it listed beneath each
one. Radha clicks on one of the dresses and it is enlarged on the
screen. Another click and Radha views the dress from different
angles. Another click and specifications such as fabric and
laundering instructions appear. Radha repeats this routine with each
dress. She selects the one she finds most appealing. SOHA knows
her measurements and picks the size that fits her best.

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 Illustration - Radha Jamison - Part 3

/0: How would you like to pay for this? (menu appears)
: American Express
/0: Nieman Marcus [the firm selling the dress Radha selected]
suggests a Xie scarf and Koslow belt to compliment the
dress.
[Radha clicks on the items and they appear on the screen. Radha
inspects these items as she inspected the dresses. She decides to
purchase both accessories. SOHA then asks Radha about delivery.
Radha selects two day delivery at a cost of $5.00]
/0: Just a reminder. You have not purchased hosiery in 30
days. Do you wish to reorder at this time?
: Yes
/0: Same shades?
: Yes
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 why Do People Patronize a Retailer?

Merchandise Assortments
Service
onvenience
Information to make good selections
Price - Total cost to customer
Go to store, find right merchandise, return
merchandise
Entertainment
Social interaction

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 Benefits of Electronic hannel

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 Virtual ommunities

Virtual community is a network of members

sharing common interests that interact with
each other electronically.
Examples:
IVillage - women
Garden.om - Gardeners

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 Value Proposition for Members

Meaningful personal Entertainment

relationships --
Opportunity to
interaction with other
people with common
interests draws
people to community.

Access to competing
vendors and publishers
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 who Is Best Suited to Organize
a Virtual ommunity?

oncerned onsumers
Suppliers
Retailers

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 what Merchandise will Be Sold
Successfully Over the Internet
³Look and See´ attributes vs. ³Touch and Feel´
attributes (?)
Degree to which information can be used to
predict satisfaction prior to purchase
Gifts
Services
Might not need to ³Touch and Feel´
-

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 Reasons for Becoming

a Multi-hannel Retailer
-Increase Share of wallet

-Overcome Limitations of Existing Format

-Expand Market
-Brand Name, Inventory, ustomer Database

-Develop Insights in ustomer Shopping Behavior

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Issues onfronting a Multi-hannel Retailer

Maintaining Brand Image Across

hannels
Merchandise Assortment Offered in Each
hannel
Pricing Across hannels

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Integration ± Key to Multi-hannel Retailing

‡   

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‡‡ ‡‡‡Needs and
‡consistent service ‡preferences
‡regardless ‡‡‡One to One
‡of channel ‡Marketing

‡‡r
‡‡‡Shopping
‡‡‡ Ordering ‡Advice
‡‡‡ Returns ‡‡‡ustomer
‡‡‡ Refunds ‡Service
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 * 
  -  *  
⠏onsumer does not find
desired item in the store.

⠏onsumer goes to
atalog to search
for product

⠏atalog links to
chain¶s web-site
allowing consumers
to find and
purchase item
⠏onsumer places
order online for
home delivery or
store pick-up at a
Source: p
 
 , 01 Feb 00; 

   , 01 Feb 00.
later time
pp