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CHAPTER 8: MULTI-CHANNEL SUCCESS AND THE FUTURE OF E-RETAILING - Coggle…
CHAPTER 8: MULTI-CHANNEL SUCCESS AND THE FUTURE OF E-RETAILING
THE MULTI-CHANNEL RETAILER
A retailer that sell merchandise or service through more than one channel. By using a combination of channel, retailers can exploit the unique benefit provided by each channel.
INTRODUCTION
Multichannel is the use of a variety of channel in a customer's shopping experience including research before a purchase.
the experience of a customer who shops using the different channels made available by a company, such as brick-and-mortar stores, catalogs, website, mobile application, TV commercials, and call centers.
Retailer that sell merchandise or services through more than one channel.
Retailers can influence the unique benefits provided by each to attract and satisfy more customers.
TYPE OF MULTI-CHANNEL
Stores
Catalogs.
-Internet
UNIQUE BENEFIT PROVIDED BY STORE CHANNEL
Browsing
Touching and feeling
Personal service
Cash and credit payment
Entertainment and social interaction
Immediate gratification
Risk reduction
BENEFIT PROVIDED BY CATALOG CHANNEL
Convenience information safety
Broad selection
the vast number of alternatives available to consumers.
Detailed problem solving information
to help customers make better purchase decision.
Personalization
Offering live, online chat-opportunity
Access to more retailer and deeper merchandise.
Consumer buying decision process in multi-channel
need recognition
information search
information evaluation
purchase decision
post-purchase behavior
KEY TO MULTI - CHANNEL RETAILING
Create a seamless experience
synchronized & consistent service regardless of channel
Know the customer
Need and preferences
one to one marketing
Make it easy
ordering
returns
refunds
Provide support
call center
shopping
customer
service
CHALLENGES
lack of skill to succeed in internet retailing
lack of trust in internet retailing
locale limitations
high start up of love cost
more reason for becoming a multi channel retailer
increase share of wallet
overcome limitations of existing format
expand market
provide services more cost efficiently
leverage existing assets
brand name, inventory, customer database
develop insight in customer shopping behaviour
EVOLUTION TOWARD MULTICHANNELRATILING
traditional store-based and catalog retailers are placing more emphasis on their electronic channels and evolving into multichannel retailer
e-channel gives a way to overcome limitations of existing format
with electronic channel, retailer can reach out to new markets.
build share of wallet
e-channel enables retailer to give insights into customer's shopping behaviours
why are store - based retailer evolving into multi-channel retailer
sales through an electronic channel are growing at over 20% per year
adding an electronic channel creates immediate possession utility
multi-channel retailer can attract more customers and satisfy existing customer better
the growth of sales in stores is declining
BENEFIT PROVIDED BY DIFFERENT CHANNELS
STORES
browsing
touching and feeling merchandise
cash payment
instant gratification
personal service
entertainment and social interaction'
risk reduction
catalogs
convenience
-safety
portability and easy access
internet
convenience
safety
personalization
broad and deep assortement