Information Gathering and Processing in Retailing Chapter 8 Information Gathering and Processing in Retailing

Chapter Objectives To examine the retail information system, its components, and recent advances To investigate secondary data sources To explore retail image research

Retail Information System -note micromarketing Gathering Information Through: -UPC (Universal Product Code)/EAN-13, -RFID (Radio Frequency Identification), -EDI (Electronic Data Interchange) Data Mining and Politics Manufacturer Item *Omit “The Marketing Research Process except for Secondary Data Sources and Mystery Shoppers

Retailers Need To Know Suppliers Need To Know Consumers Need To Know From the Retailer Estimates of category sales Inventory turnover rates Feedback on competitors Level of customer returns From the Customer Attitudes toward styles and models Extent of brand loyalty Willingness to pay a premium for superior quality From the Supplier Assembly and operating instructions Extent of warranty coverage Where to send a complaint From the Retailer Where specific merchandise is stocked in the store Methods of payment acceptable Rain check and other policies Retailers Need To Know From the Supplier Advance notice of new models and model changes Training materials Sales forecasts Justifications for price changes From the Customer Why people shop there What they like and dislike Where else people shop

Figure 8-2: A Retail Information System Data-Base Management A major element in an RIS System gathers, integrates, applies, and stores information in related subject areas-Used for: Frequent shopper programs Customer analysis Promotion evaluation Inventory planning Trading area analysis Anticipates the information needs of retail mgrs Collects, organizes, and stores relevant data on a continuous basis Directs the flow of information to the proper decision makers

Data mining is the in-depth analysis of information to gain specific insights about product categories, vendors, customers, and so forth Micromarketing is an application of data mining, whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments Figure 8-4: Retail Data-Base Management in Action

Secondary Data Sources Internal Sales reports Billing reports Inventory records Performance reports External Data bases ABI/Inform, etc. Government U.S. Census of Retail Trade Statistical Abstract of the U.S. Public records Interesting Sites Virtual Shopper Demographics Geodemographics Commercial Site Design&Merchandising Fashion

Figure 8-9: A Semantic Differential for Two Furniture Stores

A. Definition, Components of Store Image Image Research* A. Definition, Components of Store Image B. Target Audience, esp. Multiple Segments C. Measurement a. Assume Expectancy-Value Multi-Attribute Model b. Determine Important Attributes c. Define Competition, Sample d. Rate Important Attributes e. Compile Respondent Characteristics f. Analyze Results Concept Testing Chapter Eight Discussion Questions: 5, 6, 8, 10, 11