Terms in this set (49)Luiza Helena Trajano company's early growth came from acquisitions of small-town retailers (Sao Paulo) mutual respect for lower & upper-income customers used a multi-channel approach "Magazine Voce" - the system allowed "agents" to create their own virtual Luiza store on FB with 20 products and sell these products to their friends Retail Channel the way a retailer sells and delivers merchandise and services to its customers Store Most common channel used by retailers Variety of non-store channels retailers use Internet, mobile, catalogs, direct mail, direct selling, television home shopping, direct-response TV, automated retailing (vending machines) Channel involves the opportunity to complete a transaction to sell and deliver merchandise Medium used to communicate information to consumers Multi-channel Retailing involves using more than one channel to sell and deliver merchandise and services to consumers Omniretailing frequently used with multi-channel retailing: refers to a coordinated multichannel retail offering that provides a seamless customer experience when using all of the retailers shopping channels Sears birth of multichannel retailing Capt. Harry's Fishing example 40% of foot traffic came from foreign customers launches catalog then Internet almost all large retailers operate multichannel retailers added Internet channel that offers customers an opportunity to buy merch and services by accessing their website as well as patronizing their stores vast majority of sales are made through stores Internet & catalog channels account for significant sales Mobile channel has the highest growth rate Internet Retailing fastest growing channel. Involves retailers interacting with customers via the Internet Electronic Channel involves accessing the Internet through a traditional computer Mobile Channel AKA mobile retailing, mobile commerce, m-commerce involves accessing the Internet via smartphone Smartphone advantages portable, smaller display, location-aware, use different touch-screen tech to access the Internet, create a different interface experience with the user 75% / 83% of US consumers use the Internet to search for info about a product before they go to the store Catalog Channel nonstore retail channel in which the retail offering is communicated to customers through a catalog mailed to consumers 1/2 of US consumers shop through this biggest categories: drugs, beauty aids, computers, software, clothing, accessories, furniture, housewares Direct-Response TV (DRTV) customers watch a TV ad that demonstrates merch and then place orders for that merch infomercial: 30 to 60 min long form that mixes entertainment with product demonstrations short form consisting of one-to-two min. ads on tv precisely measurable Television home shopping customers watch a TV network with programs that demonstrate merch and then place orders for that merch two largest retailers that use this: HSN & QVC adv: merch is demonstrated to inform embracing social media Direct Selling retail channel in which salespeople interact with customers face-to-face in a convenient location salespeople demonstrate merch benefits, explain service, take orders, deliver merch highly interactive retail channel in which considerable info is conveyed to customers through F2F discussions and demo (can be costly) buy merch and resale to customers Direct Selling: Party Plan System salespeople encourage customers to act as hosts and invite friends or coworkers to a "party" hostess receives a gift or commission for hosting the party in the party, merch is demonstrated and attendees place orders Direct selling: Multilevel System independent business people serve as master distributors, recruiting other people to become distributors in the network master dist. - buy merch from firm and resell it to their distributors or receive a commission on all merch purchased by the distributor in their network Multilevel System: Illegal Pyramid Scheme developed firm and program are designed to sell merch and services to other distributors rather than end-users founders & initial distributors profit from inventory bought by later participants but little merch is sold to consumers who use it Automated Retailing Vending machines: placed at convenient, high-traffic locations 80% - cold bevs, snacks, candy, prepared food InstyMeds Corp. - dispense presription meds Store Channel Benefits: Touching & Feeling Products use all five senses when examining and evaluating products Store Channel Benefits: Personal Service sales associates still have the unique ability to provide meaningful, personalized info. Store Channel Benefits: Risk Reduction increases customers confidence that any problems with a purchase will be corrected access customer service and get additional info on how to use a product Store Channel Benefits: Immediate Gratification customers can use their products immediately after purchase can be same-day or last-minute purchase rather than waiting on shipping Store Channel Benefits: Entertainment & Social Experience provides a break from daily routine enables to interact with friends Store Channel Benefits: Browsing customers have a general sense of what they want, not a specific item helps customers decide what they want Store Channel Benefits: Cash Payment some prefer to buy with cash to avoid interest payments or excessive debt other are concerned about security identity theft Catalog Channel Benefits provides safety and convenience benefits to the customer unique advantages: IKEA example: improved catalog with AR Internet Channel Benefits improved ability to serve customers and build a competitive advantage Internet Channel Benefits: Deeper & Broader Selection easily "visit" and select merch from a broader array of retailers deeper assortment of merch (colors, brands, sizes) offer more categories Internet Channel Benefits: More Info for Evaluating Merch providing info that helps consumers make a better buying decision Store: limited by sales associate knowledge used to solve problems, Internet Channel Benefits: Personalization personalize merch offerings and info to customers format info so that it can be effectively used live chats: enables retailers to send a proactive chat invitation automatically to customers on site EXAMPLE: Neiman Marcus, REI, IKEA, L.L. Bean Internet Channel Benefits: Expanded Market Presence can expand without incurring costs of new stores or excessive catalogs particularly attractive to retailers with strong brand names but limited locations and distribution EXAMPLE: Amazon Internet Channel Benefits: Provide Info to Improve Shopping Experience Across Channels customer id and purchase history can be used to provide insight into how and why customers shop and are they satisfied or dissatisfied with their experiences cookie: collects info about computer usage, can monitor customer views and purchases this helps design stores or websites lay-outs , unique promotions, additional product interests Internet Channel Benefits: Perceived Risks in Internet Shopping security of credit card transactions is greater and there are potential privacy violations encrypt communication security breaches are handled fairly quickly due to retailer's reputation on the line Comparison of Electronic and Mobile Phones mobile channel is portable, can access Internet everywhere location-sensitive disadv: smaller screen, slower download speeds, Comparison of Electronic and Mobile Phones: APPS typically used to easily perform some specific functions available on the website but doesn't provide access to all of the functions on the website tablets are the best trade-off between portability and navigation EXAMPLES: Amazon, Target Anthropologie's Challenges Facing Multichannel Retailers Amazon: from Internet to adding stores all want a seamless experience Example: Best Buy offer pick-up
& returns at store Multichannel Supply Chains and Information Systems struggles to provide integrated shopping experience because various skills and unique resources needed integration of both store & internet operations into one Centralized vs. Decentralized Multichannel Retailing critical decision: degree to which they should integrate the operations of the channels or have diff. orgs for each channel 1) complete integration: same products at same prices through same distribution for all channels 2) diff organizations manage each channel to tailor to different target markets Consistent Brand Image across Channels provide a consistent brand image of themselves and their private-label merchandise across all channels examples: Patagonia, Build-A-Bear Merchandise Assortment multichannel: broader and deeper merch assortment through their Internet channel than their store store channel: better to sell "touch-and-feel" attribute products more returns on Internet channel Pricing many customers expect prices to be the same across all channels retailers adjust prices bc of competition they face in different channels multichannel retailers face difficulty sustaining regional price differences when customers can easily check prices on the Internet Reduction of Channel Migration Channel migration: gathers info in one of its channel and purchases elsewhere retaining customers remains a constant challenge showrooming: goes into a store to learn about the product then buys product online at lower price reduce: Sets with similar termsRetail Management Chapter 315 terms maclogan10 Retail Management 338 terms evybbyx Retailing - Ch3: Multichannel Retailing18 terms Kim_QTK Sets found in the same folderRetailing MGMT Chpt. 1063 terms odalys_rodriguez3 Retailing MGMT chpt. 1851 terms odalys_rodriguez3 Retailing MGMT chpt. 1778 terms odalys_rodriguez3 Other sets by this creatorChapter 125 terms odalys_rodriguez3 Consumer Behavior chpt.939 terms odalys_rodriguez3 Retailing Chpt.560 terms odalys_rodriguez3 Retailing chpt.656 terms odalys_rodriguez3 Verified questions
question a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually. b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Why do these percentages change over time? Verified answer question Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 45% with a $20 million investment in plant and machinery. The firm wants to maintain a 35% debt level in its capital structure. It also wants to maintain its past dividend policy of distributing 55% of last year’s net income. In 2016, net income was$5 million. How much external equity must Coastal Carolina seek at the beginning of 2017 to expand capacity as desired? Assume that the firm uses only debt and common equity in its capital structure. Verified answer
question Who are some of the basic users of financial statements, and how do they use them? Verified answer
question A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: $$ \begin{matrix} \text{ } & \text{0} & \text{1} & \text{2} & \text{3}\\ \text{Project X} & \text{- \$ 1000} & \text{ \$ 110} & \text{- \$ 300} & \text{\$ 430}\\ \text{Project Y} & \text{- \$ 1000} & \text{\$ 1100} & \text{\$ 90} & \text{\$ 55}\\ \end{matrix} $$ The projects are equally risky, and their WACC is 11%. What is the MIRR of the project that maximizes shareholder value? Verified answer Recommended textbook solutions
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What is an advantage of Internet channels over other retail channels quizlet?Retailers have benefited by having Internet channels because it offers a deeper and broader selection, has more information for evaluating merchandise, and has personalization.
What is a retailing through a channel in which merchandise or services are store in a machine and dispensed to customer when they deposit cash or use a credit card?Vending Machine retailing is a non-store format in which merchandise or services are stored in a machine and dispensed to customs when they deposit cash or use a credit card.
What is an advantage of Main Street locations over other store locations?What is an advantage of Main Street locations over other store locations? Main Street locations generally have lower occupancy cost than gentrified urban areas.
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