information gathering and processing
DESCRIPTION
retail managementTRANSCRIPT
8-1Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Information Gathering and Processing in Retailing
RETAIL MANAGEMENT:A STRATEGICAPPROACH
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8-2Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Informationand theSupplier
Informationand theRetailer
Informationand the
Consumer
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8-3Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Suppliers Need To Know
From the RetailerFrom the Retailer
v Estimates of category sales
v Inventory turnover rates
v Feedback on competitors
v Level of customer returns
From the CustomerFrom the Customer
v Attitudes toward styles and models
v Extent of brand loyalty
v Willingness to pay a premium for superior quality
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8-4Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Retailers Need To Know
From the SupplierFrom the Supplier
v Advance notice of new models and model changes
v Training materials
v Sales forecasts
v Justifications for price changes
From the CustomerFrom the Customer
v Why people shop there
v Customers’ likes and dislikes
v Where else people shop
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8-5Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Consumers Need To Know
From the SupplierFrom the Supplier
v Assembly and operating instructions
v Extent of warranty coverage
v Where to send a complaint
From the RetailerFrom the Retailer
v Where specific merchandise is stocked in the store
v Methods of payment acceptable
v Rain check and other policies
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8-6Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Retail Information System (RIS)Retail Information System (RIS)
v Anticipates the information needs of retail managers
v Collects, organizes, and stores relevant data on a continuous basis
v Directs the flow of information to the proper decision makers
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8-7Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 8-2: A Retail Information System
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8-8Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Data-Base ManagementData-Base Management
v A major element in an RIS
v System gathers, integrates, applies, and stores information in related subject areas
v Used for鐻 Frequent shopper programs
鐻 Customer analysis
鐻 Promotion evaluation
鐻 Inventory planning
鐻 Trading area analysis
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8-9Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Five Steps to Approaching Data-Base ManagementFive Steps to Approaching Data-Base Management
v Plan the particular data base and its components and determine information needs
v Acquire the necessary information
v Retain the information in a usable and accessible format
v Update the data base regularly to reflect changing demographics, recent purchases, etc.
v Analyze the data base to determine strengths and weaknesses
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8-10Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 8-4: Data-Base Management in Action
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8-11Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 8-5: Data Warehousing
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8-12Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Components of a Data Warehouse
v Physical storage location for data – the warehouse
v Software to copy original databases and transfer them to warehouse
v Interactive software to allow processing of inquiries
v A directory for the categories of information kept in the warehouse
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8-13Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Data Mining and MicromarketingData Mining and Micromarketing
v Data mining is the in-depth analysis of information to gain specific insights about customers, product categories, vendors, etc.
v Micromarketing is an application of data mining whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments
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8-14Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 8-6: Applying UPC Technology to Gain Better Information
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8-15Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 8-7: The Marketing Research Process
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8-16Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Marketing Research Marketing Research in Retailingin Retailing
The collection and analysis of information relating to specific issues or problems facing a retailer
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8-17Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Secondary DataSecondary Data
AdvantagesAdvantages
v Inexpensive
v Fast
v Several sources and perspectives
v Generally credible
v Provides background information
DisadvantagesDisadvantages
v May not suit current study
v May be incomplete
v May be dated
v May not be accurate or credible
v May suffer from poor collection techniques
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8-18Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Secondary Data SourcesSecondary Data Sources
InternalInternalv Sales reportsv Billing reportsv Inventory recordsv Performance reports
ExternalExternalv Data bases
鐻Academic Search Premier
鐻Government鐻U.S. Census of Retail
Trade鐻Statistical Abstract of
the U.S.鐻Public records
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8-19Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Primary Data
AdvantagesAdvantages
v Collected for specific purpose
v Current
v Relevant
v Known and controlled source
DisadvantagesDisadvantages
v May be more expensive
v Tends to be more time consuming
v Information may not be acquired
v Limited perspectives
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8-20Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Primary Data DecisionsPrimary Data Decisions
鐻In-house or outsource?鐻Sampling method?
鐻Probability鐻Non-probability
鐻Data collection method?鐻Survey鐻Observation鐻Experiment鐻Simulation
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8-21Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Survey MethodsSurvey Methods
v In person
v Over the telephone
v By mail
v Online
v Disguised
v Non-disguised
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8-22Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Figure 8-9: A Semantic Differential for Two Furniture Stores
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8-23Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
Mystery ShoppersMystery Shoppers
v Retailers hire people to pose as customers in order to evaluate aspects of the store environment (e.g. sales presentations, display maintenance, and service calls)
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8-24Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
ExperimentsExperiments
v An experiment is a research method in which one or more elements of a retail strategy mix are manipulated under controlled conditions.
q An element may be a price, a shelf display, store hours, etc.
q If a retailer wants to find out the effects of a price change on a brand’s sales, only the price of that brand is varied.
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8-25Retail Mgt. 11e (c) 2010 Pearson Education, Inc. publishing as Prentice Hall
SimulationSimulation
v A simulation is a type of experiment whereby a computer program is used to manipulate the elements of a retail strategy mix rather than test them in a real-life setting.
v Two simulation types are now being applied in retail settings: those based on mathematical models and those involving “virtual reality.”
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