Using Transaction Utility Approach for Retail Format Decision

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financial deal per se and is a function of the difference between the selling price and the reference price. Choice of a format has been studied from several dimensions including the cost and effort as well as the non-monetary values. However, the studies that present the complete picture and combine the aspects of the tangible as well as intangible values derived out of the shopping process are limited. Most of the studies, all of them from the developed economies, have focussed on the selection of a store. They represent a scenario where formats have stabilised. However, in Indian scenario formats have been found to be influencing the choice of store as well as orientation of the shoppers. Also, retailers are experimenting with alternate format with differing success rates. The author has also not found a study that has applied this theory. It is felt that the Transactional Utility Theory may provide a suitable approach for making format decisions.

Determinants of Shopping Behavior of Urban Consumers

This study explores the influence of geo-demographic settings of commercial centers, customer attractions in shopping malls, and route to shopping of urban shoppers. The present research analyzes retailing patterns in urban areas in reference to customer orientation strategies, product search behavior and enhancing the customer value. Interrelationship among urban retailing, marketplace ambiance, conventional shopping wisdom of customers, long-term customer services, and technology led selling processes are also addressed in the study based on empirical survey. Broadly, this study makes contributions to the existing research in urban retailing towards factors determining shopping attractions, routes to shopping, and establishing the customer-centric strategies of the firms.Shopping mall, multi-channel retailing, consumer behavior, customer-centric strategy, market attractiveness, customer satisfaction

Review of Business Intelligence and Portfolios Performance with Case Study

This paper deals with a most important issue that is the effects of business intelligence on portfolios performance, business intelligence can be summarized as the operation to offer the right needs for the right customer which helps the companies' sustainability and continuity also integrity. A study and statistical analysis is performed on some samples of companies and portfolios collected and studied in Jordan. A relationship via business intelligence for both prices discrimination and switching costs and success percent is constructed. Keywords: business intelligence, portfolios, switching costs

Theory and Practice in Multi Channel E Commerce Strategies: A case study of an apparel and home-ware retailer

Multi-channel retailing is becoming main-stream and a growing body of research is accumulating on multi- channel e-commerce strategies. Yet some organisations have more success than others with their multi-channel strategies. We talked to the management of one of Australasia’s most successful multi-channel apparel and home-ware retailers about the theory and practice of multi-channel retailing, with the aim of adding to the body of knowledge in this area. Management identified seven success factors: functional integration, channel synergy, service brand management, integrated information management, excellent logistics management, customer relationship management, market sensing, and process engineering

Drivers of changing supply chain capability expectations in the online retail sector: the role of sales transactions.

Online retailers have created new demands and opportunities for their supply chain providers. This paper reports on a five year UK-based study of this market space, whose logistics needs are in part provided by third party e-fulfilment organisations (3PEFs), businesses offering traditional and innovative services specifically to online retailers. To establish links between 3PEF capabilities and online retailer needs, the Croom e-Business Maturity Model is used to map core 3PEF capabilities and in this way link 3PEF offerings to supply chain needs of theircustomers. Over the five years of the study, it is observed that a significant trigger for developing new capabilities is embedded in sales transactions. A model is presented to explain how customer expectations are transformed in these same sales transactions, and application of this model in a wider logistics context is also suggested

An analysis of physical distribution service quality in the online retail market

Abstract unavailable please refer to PD

Multichannel in a complex world

The proliferation of devices and channels has brought new challenges to just about every organisation in delivering consistently good customer experiences and effectively joining up service provision with marketing activity, data and content. A good multichannel strategy and execution is increasingly becoming essential to marketers and customer experience professionals from every sector. This report seeks to identify the key issues, challenges and opportunities that surround multichannel and provide some best practice insight and principles on the elements that are key to multichannel success. As part of the research for this report, we spoke to six experienced customer experience and marketing practitioners from large organisations across different sectors. In Multichannel Marketing: Metrics and Methods for On and Offline Success, Akin Arikan (2008) said: ‘Because customers are multichannel beings and demand relevant, consistent experiences across all channels, businesses need to adopt a multichannel mind-set when listening to their customers.’ It was clear from the companies interviewed for this report that it remains challenging for many organisations to maintain consistency across so many customer touchpoints. Not only that, but the ability to balance consistency with the capability to fully exploit the unique attributes of each channel remains an aspiration for many. The proliferation of devices and digital channels has added complexity to customer journeys, making issues around the joining up of customer experience and the attribution of value of key importance to many. Whilst senior leaders within the organisations spoken to seem to be bought in to multichannel, this buy-in was not always replicated across the rest of the organisation and did not always translate into a cohesive multichannel strategy. A number of companies were undertaking work around customer journey mapping and customer segmentation, using a variety of passive and actively collected data in order to identify specific areas of poor customer experience and create action plans for improvement. Others were undertaking projects using sophisticated tracking and tagging technologies to develop an understanding of the value and role of specific channels and to provide better intelligence to the business on attribution that might be used to inform future investment decisions. A consistent barrier to improving customer experience is the ability to join up many different legacy systems and data in order to provide a single customer view and form the basis for delivery of a more consistent and cohesive multichannel approach. Whilst there remain significant challenges around multichannel, there are some useful technologies allowing businesses to develop better insight into customer motivation and activity. Nonetheless, delivery of seamless multichannel experience remains a work-inprogress for many

Omnichannel Value Chain: Mapping Digital Technologies for Channel Integration Activities

In order to provide a seamless customer experience, researchers and practitioners have proposed creation of an omnichannel retailing environment by integrating online and offline channels. Channel integration necessitates use of digital technologies and there are myriads of technological solutions available. However, retailers are struggling with selection and implementation of suitable technologies to add value through channel integration. Despite the strong practical need, this issue has not been effectively addressed in the academic literature. This paper presents an omnichannel value chain underpinned by Porter’s value chain model. We identify ten channel integration activities for value creation by carrying out a synthesis of current research on omnichannel retailing. Enabling digital technologies are then mapped to these activities using technology implementation examples and provide a guideline for retailers to select appropriate technologies for the identified value creation activities

Cyber retailing in the UK: the potential of the internet as a retail channel

A myriad opinions has been propounded to explain how “cyberspace” can be exploited by commercial organisations. For the most part they are speculative, visionary or promotional. This work seeks to redress the balance by focusing on the utilisation of the Internet within the UK retail sector and examining its potential as a new retail channel. The paper presents an exploratory study using qualitative and quantitative methods: an online survey of retail Web activities followed by in-depth interviews. This approach provides a framework of current retail usage of the Internet and explores retailers’ perceptions of the inhibitors and facilitators to its development. It concludes with an emerging model that explains why current levels of retailing on the Internet are low and provides guidance for retailers wishing to increase their level of Internet activity