Channel Power in Multi-Channel Environments

In the literature, little attention has been paid to instances where companies add an Internet channel to their direct channel portfolio. However, actively managing multiple sales channels requires knowing the customers’ channel preferences and the resulting channel power. Two key components of channel power are (i) the existing customers’ intrinsic loyalty to a channel, and (ii) the channel’s ability to attract new customers. We apply the Colombo and Morrison (1989) model to analyze the channel loyalty and conquesting power of two direct channels operated by a given firm. In addition, we analyze the evolution over time in each channel’s power, and test for differences in channel power among different product categories offered by the firm, and among different customer segments

Evolving perceptions of assortments, image and customer experiences in retail environments

Consumers perceptions of retail stores, the assortment of products and the locations in which they are situated, all influence consumers decisions about where, when and how to shop. In the highly competitive arena of retailing, this knowledge greatly affects retailer performance and marketing strategy. Despite this strategic importance, the literature lacks empirical research into the assortment of categories offered in retail stores and their influence on store image. Moreover, image conceptualisation for different retail contexts is fragmented and the consumer image perceptions of categories are unexplored. Recent attention has shifted to customer experience research, yet this literature refers to the consumers interaction with one retailer, when consumer shopping journeys may include many retail interactions. The research presented in this thesis addresses the above gaps, contributing to theory and knowledge in the area of retail marketing. The thesis comprises eight papers published over a 17-year period. It examines the perceptions and roles of retail assortments; category perceptions and management in retail stores; customer perceptions of image and experiences of town centres. The thesis draws from a range of empirical studies documented within the eight papers. These include: a comparative study of ten major retailers assortment strategies; a survey of 504 consumers perceptions of supermarket assortments; a qualitative study involving six national focus groups of apparel consumers; and a survey of 536 consumers across five regional city centres. The studies are informed by two literature reviews documenting retail assortment research and town centre research. Collectively, the thesis delivers a significant research contribution to knowledge and theory. The first four thesis papers clarify the strategic relationships between retail assortment and image. The following two papers identify new perspectives of image congruence and relationships between category and store image. The final two papers consolidate all previous contexts in a multi-faceted retail image construct, emphasising the previously neglected psychological image elements. Fundamentally, consumers experiences in town centre retail environments contribute to the ongoing process of holistic image creation. The findings demonstrate that as retail environments change, consumers perceptions are also evolving from a functional, static image perspective to a dynamic, experience driven concept. The research commentary concludes by outlining future research agenda

Bricks vs. Clicks: How Businesses Survive

Traditional retail has transformed into a digital shopping marketplace, as revenue for e-commerce businesses have increased and is expected to rise over the next five years, whereas traditional brick and mortar companies without online capabilities have experienced a decline in revenue. The paper will discuss what businesses must do to survive the digital shift in shopping from brick-and-mortar shopping to e-commerce shopping. Two major players in the e-commerce market today are Amazon and Wal-Mart. Both companies have become profitable e-businesses leading the way in transforming retail trade and e-commerce. As customers shift more of their shopping to online platforms, I want to discuss how e-commerce has changed the face of retail, and focus on two businesses, Amazon, and Wal-Mart and the evolution of both companies and their success

Differences in retail strategies on the emerging organic market

Abstract: Purpose – The organic product market can be considered as an emerging market. Since the 1990s it has experienced rapid growth, and supermarket chains have become the sales channel with the largest market share and are the main driver for further growth. However, different supermarket retail groups have very different strategies concerning the marketing of organic products. The purpose of this paper is to gain insight into the different strategies of retailers who are active in the organic product market and to explain the drivers which may underlie them. Design/methodology/approach – The strategies of the three most important Belgian retailers that market organic products, and in particular organic beef, are analyzed. Data were collected through interviews with the retailers' staff and through observations in retail outlets. Also, GfK-household panel data which recorded all purchases of 3,000 Belgian households and a postal survey with 529 respondents were used as data sources. Findings – The different strategies used by retailers to market organic foods are associated with the overall characteristics and marketing strategies of the retail groups. Some retail groups have clear “first mover” advantages from engaging in the organic product line, while for others an adaptive strategy is more appropriate. Research limitations/implications – The insights from this paper will help the understanding and facilitate the development of future strategies for organic and other high-value or premium products, which will be of interest to researchers and stakeholders who are active in these markets. Practical implications – The retail sector is not a single homogeneous block, but instead consists of retailers who pursue quite different strategies. This concept may have major implications for the future development of high-value markets. Originality/value – Existing relevant theories were applied to the adoption of the organic product line, a segment in the portfolio of retailers that is becoming more important. The empirical material collected sheds new light on the drivers behind retail strategies

Understanding retail strategy and shopping behaviour: Perspectives from a developing country

This research indicates that in order for retailers to achieve their primary objective of increasing the amount of customer traffic into their stores, some powerful, highly effective and strategic tools that retailers possess need to be utilised in an effective manner in order to meet their objectives. This research has been developed to examine the strategies that retailers can utilise in order to influence the customers' preference to shop in their stores. From the multitude of strategic choices available for each decision, a retailer can choose any combination. A survey was conducted, in order to collect data on customer behaviour, recruiting, store design, retail marketing, Supply chain management (SCM), customer relationship management (CRM) - as well as a few other criteria - in the South African retail sector. This descriptive study establishes whether a retailer who makes an initial choice about which strategy to implement, complies with the existing understanding on the customers' preferences. Patterns and trends were detected when studying the determinants of various strategic retail combinations for retailers. The data indicated asymmetric evaluations of choices, in combination with a few distinct patterns. Additionally, a few associations between store preferences and price were identified with specific locations for the customers. Some combinations are more alike than others; and a concern exists that the pricing strategy in isolation fails to portray a complete picture. The study reveals that retailers should be more customer-focused; while at the same time, providing the requisite skills to their employees, in order to retain their existing customers, and to attract new customers

Influence of Customer Service and Firm- Level Characteristics on Customer Satisfaction Among Large Retail Supermarkets in Kenya: Theoretical Framework

Different companies adopt different mechanisms to measure customer satisfaction and gain competitive edge. Principal component analysis identified five constructs which were found to influence respondents' decision to purchase: value, physical appearance, usage, prior experience and promotion. To achieve customer satisfaction therefore, most large firms are grappling to balance both the tangible and intangible consumer previous experience in order to maintain a destination of choice for its target audience. Customer service and firm level characteristics remain crucial elements of the retail mix that are of great significance to supermarket operations. Empirical review widely links the two aspects with customer satisfaction and that they are important for organization performance, growth, and sustainability amidst competition. However, previous studies have analyzed each aspect separately or looked at the variables independently which is a fact to be established in this study. The purpose of this study was to examine the influence of customer service and firm level characteristics on customer satisfaction among large retail supermarkets in Kenya. The study tested a conceptual framework of six variables which links customer service and firm level characteristics to customer satisfaction; customer loyalty card initiative; supermarket ambience; operation schedule; supermarket pricing differentiation; supermarket image; and supermarket location. Key words: Customer Service and Firm- Level Characteristics, Customer Satisfactio

Store Atmosphere Strategies and their Effects on Purchase Intention

Retailers must continually adjust to the realities due to the fast speed of today's society, which brings with it constant changes in fashion trends, technology advancements, and also the modification of lifestyle. Even though such improvements and adjustments are unnecessary, they must be made in order to keep the store attractive or to modernize the technical infrastructure and lower operating energy usage in the face of competition from new, similarly minded businesses. The functioning of the retail operation is heavily influenced by the architectural and design solution, where the customer must first arrive at the store, which then needs to draw them in and persuade them to make a purchase. Recent years have seen a rise in the importance of the shopping environment. Many stores rely on the fact that they have the most comfortable atmosphere, which forces the customer to stay in the store as long as possible. Sellers also try to make shopping an experience, making it necessary for the customer to feel satisfied in the store. Shopping atmosphere and control can help higher customer satisfaction. It is therefore very important to monitor the key factors that affect the atmosphere in the store. This article examines selected elements of the shopping atmosphere and its impact on consumers in electronic markets operating in Turkey, Germany, and England. It integrates research, survey, and observation into real terms of selected retail operations. Based on the findings, the conclusion on adapting selected factors influencing the atmosphere is proposed to improve the overall well-being of customers and thus their satisfaction during shopping

Off-Price vs. Department Store Retailing

There are multiple forms of retailing in the United States – two of the most common forms are department store retailing and off-price retailing. Both types of retailers are looking to create profits by negotiating costs with vendors to create suitable gross margins; however, they go about doing so in very different ways. Because I have interned at both types of corporations, my Capstone is to identify which, if either model, is more sustainable in today’s conditions. Department store retailing is the most well-known form of retailing, and is currently the largest sector of retailing in the United States. They have been successful in the United States since the middle of the 1800’s, and continue to exceed in the market because they are household names that people trust, and they cater to the middle and upper classes, who place a value on convenience. Off-price retailers are best known for offering designer goods at prices that can be between 20% and 60% lower than their department store prices. It’s a far newer concept that tailors its assortment to people who want to buy name brands, but who can’t afford or don’t want to pay department store prices. There is a place in the market for these retailers because of the growing concern of value. Off-price retailing has been growing at extremely rapid rates in recent years. My internships, and observations from these internships, at Macy’s and Ross Stores is my primary form of research for this paper. I also conducted interviews with industry insiders and consulted secondary sources on the subject. In order to begin this process, I analyzed the two organizations that I interned at, Macy’s and Ross Stores. I assessed each stores strengths, weaknesses, opportunities and threats that I witnessed throughout my time at each company. Taking what I learned from my analysis of the two organizations I had personal experience with, and my interviews from professionals working in the industry, I identified the major similarities and differences in the two business models. After analyzing the similarities and differences, I looked at how the political, economic, socio-cultural and technological externalities affected retailing in general. Based on all of my primary and secondary research, I believe there is a place in the market for both models of retailing. Because Americans are increasingly price-conscious, off-price stores do have a slight edge in today’s market. Off-price stores appeal to a wide variety of customers and offer excellent value to their customers. The stores have been showing incredible growth from year to year, and their customers often leave satisfied, even though the stores lack the “glamour” of department stores. However, this doesn’t negate the fact that department stores still do appeal to a very specific customer that is not going away. The wealthier part of the society still enjoys shopping at department stores for their excellent customer service, their wide assortment and the “feeling” they get when in the stores. Department stores have been successful in the American market for a long time, and even though they have been declining in growth to some extent, they have always managed to come back from these declines in the past. As long as they continue to respond to their loyal customer’s wants and needs, there will continue to be a place for them in the market

STRATEGIC ANALYSIS OF TESCO SUPERMARKET

Having heavily invested in the entrance of Fresh & Easy to the US market, management is facing several questions and wonders what the best strategy will be in the near future. The central question examined and answered in this report is therefore; Which strategy should Tesco Fresh & Easy pursue in order to make a gross profit of 100 million in the US in 2013?. After a thorough internal and external analysis, a SWOT analysis is made, of which three relevant strategic options are derived. These possible strategic options are evaluated using several evaluation criteria and subsequently, one strategic option is suggested to be the best strategic option for Fresh & Easy in their current situation. This report concludes with It is suggested that implementing a customer intimacy and local focus is the best strategy for Fresh & Easy. Although it does not immediately realize the company’s initial objectives, it will help Fresh & Easy to survive in the US market and to be more profitable (in order to keep existing). Fresh & Easy should target the rapidly growing and ethically diverse population and focus on the ‘True friends’. It must position itself as the neighborhood supermarket that is responsible, interested, familiar, listens, interacts and offers the products that these customers wants. This report concludes with some implementation suggestions and broad financial forecasts. When implementing this customer intimacy and local strategy the right way, Fresh & Easy will most likely make profit after the approximately two years.