Lecture 2 Flashcards

1
Q

Touchpoints

A

All the moments in which the customer comes into contact with your brand, directly of indirectly, throughout his or her customer journey

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2
Q

Research shopping

A

The propensity of consumers to research the product in one channel (e.g., the Internet), and then purchase it through another channel (e.g., the store`)

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3
Q

BOPIS

A

Buy online, pick up in store

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4
Q

ROPIS

A

Reserve online, pick up in store

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5
Q

STS

A

Ship to store

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6
Q

SFS

A

Ship from store

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7
Q

KPI

A

Key peformance indicators

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8
Q

Benefits click & collect consumers

A
  • Instant gratification (I want it now)
  • Guarantee availability
  • Save time (no need to search, walk through store)
  • Save on delivery costs
  • Obtain advice on the usage of the product upon pickup
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9
Q

Benefits click & collect retailers

A
  • Compared to selling online with home delivery click-and-collect brings the consumer to the store
  • This provides several (potential) benefits to the retailer:
    a. Save on last-mile delivery costs
    b. Potential for up- and cross-selling at the store
    c. Build brand loyalty through store exposure
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10
Q

Challenges in offering click & collect

A
  • Inventory accuracy (theft, misplacement)
  • Information systems
  • If manual store checks are required to ensure they are done fast enough
  • Incorporating inventory checks and pickups in a way that does not detract from assisting shoppers in the store
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11
Q

Challenges with ship-to-store

A
  • Using click & collect with ship-to-store could lead to more fragmented demand, which increases inventory costs
  • If shipment between the distribution center and store cannot be consolidated efficiently, transportation costs for the “middle mile” could grow explosively
  • Some retailers ship items to the store to fulfill click & collect request because they don’t know whether the item is (already) present in the store.
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12
Q

Benefits of shipping from store

A
  • Pool inventory between online and offline channels
  • Deliver faster
  • Reduce delivery costs
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13
Q

Challenges with ship from store

A
  • Combining the order picking and packing with the other activities in the store
  • Organizing delivery
    a. Use third party or organize in house
    b. When organizing in-house ensure enough demand to make that viable
    c. Matching irregular demand for service with supply of fulfillment slots
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14
Q

drop shipping

A

Fulfillment by the vendor

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15
Q

Benefits of drop shipping to the platform

A
  • Lower capital investment – not holding inventory, only purchasing the product from the vendor when a customer orders
  • Lower financial risk
  • Ability to quickly offer a broad assortment – scale faster and cheaper
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16
Q

Benefits of drop shipping to the vendor

A
  • Good way to increase distribution, esp. for expensive and/or slow moving items that platforms hesitate to hold in inventory
  • Potential for increasing profit margins; platforms may be willing to negotiate smaller margins
  • More knowledge on customer base (e.g., location)