Quiz 1: An Introduction to Retailing

Business

Retailer: A retailer is a business or a person who sells goods and services to the end consumers. Criteria for selecting retailer: The criteria on which retailers should be selected are as follows: • Availability of all required items under one roof. • Humble and polite behavior of the sales and other staff present at the store. • Discounts and other gifts offered by the retailer. • Sales people have good knowledge about products which helps in making best decision. • The retail store is located within few miles which makes it easily accessible. In order to lure away a customer from his/her favorite firm, a competitive firm should: • Offer better discounts. • Offer better services such as faster billing process. • Should make provisions for gifts on shopping above a fixed limit. • Provide better shopping experience by increasing the attractiveness of the outlet and providing good ambience. • Provide better after sale services. • Highly trained sales staff.

Retailer: A retailer is a business or a person who directly sells goods and services to the consumers. Information provided by retailers to customers: • Product and its specifications • Differentiation of products from others • Product varieties, their models, and its specifications • Benefits and convenience of the products • After sales services • Store timings Information provided by retailers to suppliers: • Classification of available products • Quantity of product available with retailers • Purchase order numbers • Payment information • Profit allocation • Operating flexibilities • Products colors available • Delivery date and time of the product to the consumer

Multichannel retailing: • A promotional strategy provides consumers different ways to purchase goods. This strategy involves purchasing of product from stores, websites, and ordering over phone. • The main objective of multichannel retailing is to increase income and trustworthiness by offering goods as per customers' convenience. Pros and cons of a firm selling its products through its own retail stores, traditional retail stores, and through their official website are as follows: Pros: • Increased brand awareness of the products among those customers who use specific mediums to buy the products. Multichannel will help them to reach out to those consumers also. • Improved cash flow is another benefit that can be derived from such approach as different platforms are used to grab more customers. • Increase in sales as customers from different markets can be grabbed and this will increase the market share. • Products can reach more customers due to easy accessibility of product across different platforms of market. Cons: • Loss of premium value as it can be availed from any market platform. Thus, its image as a branded and premium product tends to decrease. However, this depends upon customer perception also. • Chance of duplication of products may arise through selling products from other retailers. • Decrease of premium customers as if it is perceived as valued and premium product, it may lose its specific segment of customer group.