454 Midterm Flashcards
(27 cards)
Did Retailing undergo a revolution or evolution?
an evolution, disruptive periods but are continuous
Evolution
Comes out of nowhere and has different time cycles such as settle-down periods, maturity, lifecycle etc. Consumer behaviour can take years to adapt.
Bi Purification of Retail
low price, convenient access, dominant assortments, quick and easy purchasing
Utilitarian
getting the task done mainly for buying and not for fun
Hedonistic
is more of a fun shopping approach more enjoyable
The Big Middle
is boring; others offer discounted price and others offer higher prices for greater quality of products the big middle is an example of department stores
Remarkable Retail 7 Steps
- Harmonised- the idea of being one brand in many channels, be relevant where customers need you to be, break down the silos
- Digitized- ways to make your business digital across the board, customer experience and operations
- Personalized and curated- beyond being average
- Localized- engaging the customer, being remarkable in the moments that matter
- Socialized- how social media influences buyers and what they buy or is trendy
- Amplified- unique value proposition and be relevant at a scale you can replicate
- Radicalized- adopt a culture of experimentation, push yourself to innovate and see what comes next
Buying Vs. Shopping
Buying is more task-driven, functional and utilitarian Amazon is a place to buy. Shopping is browsing, entertaining, fun can require advice and is hedonistic. Instagram is a place to shop not buy.
Why is shopping important?
Economically- drives the economy and creates jobs
Socially- a common practice or social activity
Politically- can be a political act such as not supporting certain brand names
Culturally- Christmas shopping or black Friday shopping can be traditions
Personally- it can make you happy and a way to express yourself
Show Room
looking in person and buying online
The Dark Side of Shopping
Shopaholics, compulsive shopping, addictive shopping
What is Retailing?
a set of business activities that add value to the products and services sold to the consumer
Distribution channel
a set of firms that facilitate the movement of products from the point of production to the point of sale to the ultimate customer, the closer you are to the point of need the more you can charge. Retailing is the last link of the distribution channel.
Slotting Fees
retailers charge manufacturers for the space their product occupies on the shelf sometimes retailers make more money off slotting fees than they do for selling the product, slotting fees help the stores prioritize, fees are higher where space is more scarce, shows if a manufacturer thinks a product is a winner, some retailers do not have slotting fees, this does not include the stores on brands so this makes space much more scarce, a form of negotiation, Walmart does not charge these fees given their large scale and logistics
Why Charge Slotting Fees?
for dealing with risk if the product is new, keeps the quality higher, helps the store prioritize where to put the products on display
Against; payment upfront doesn’t allow your product to sell first, can be a barrier to enter, have to pay to stay
Vertical Integration
a firm performs more then 1 set of activities in a distribution channel, Zara
Dark Patterns
buyer beware, dynamic pricing, benefit the business in question- challenging to cancel subscriptions, poor user experience that makes it impossible for consumers to come out of a situation but very easy to enter it, companies can use colour to trick you into doing what they want, dark patterns rarely face consequences
Categories of Dark Patterns
- sneaking: extra products added into basket
-hidden costs: shipping, care and handling a makeup cost
-hidden subscription: buying something and subscribing to it - -urgency: buy now last one, low stock message creates scarcity and urgency
-3. misdirection: difference in colour, hard to cancel
-testimonials: reviews
-forced action: forced enrollment - Social prove
- Scarcity
- Obstruction
- Forced action
Infomercials
did not die they adapted
Amazon
-Amazon’s ultimate goal is to sell everything to everyone,
-some centres only deliver to a city and move products that people would like in the same day, 11 minutes for an order to travel through a facility, drivers use personal vehicles to get packages out quicker, reduce the distance from the inventory to the customer, fastest deliveries reduce cost and environmental impact
-Amazon is an e-commerce enabler
Together you can have high quality and assortment, low price, high service and fast delivery
Good things Tech Companies Do
- Data-informed decision making; data-informed decisions such as Netflix algorithms
- Personalization and segmentation unique journeys for your customers that span every channel they use not just personas
- Process automation; complex tasks and taking them to streamline them to make them easier
How can a company become more digitally enabled?
- Create feedback loops, put something out, learn something from it and apply it to your business
Advantages to Work with an Influencer?
-Amplifying your reach
-Create brand awareness
-Building credibility and trust with your target audience
-Diverse creative content
-Cost-effective marketing
How to find the right Influencer to work with?
Identify your niche audience, location, subject, follower demographics, competition
