Multi-Channel Retailing

Which of these is an example of connecting the online and physical store for the shopper?

"BUY ONLINE - PICKUP IN STORE" (BOPIS)

Which best describes how multichannel and omnichannel retailers differ in their approach?

A multichannel retailer uses online and physical locations to sell its goods and services.

How would a retailer develop its presence in the Omni-channel?

A retailer would maintain a current website, keeping it current and adaptable for mobile users. They might also consider e-commerce capabilities, if there is a consumer demand. And, they might develop social media assets to engage consumers. Omni-channel is concerned about all areas where consumers can engage, regardless of whether it's a transaction point or not.

Which type of retailer best fits the description of a "multichannel" operation?

A tire store where you can order online and pick a location for installation.

Why are customers more engaged with apps?

Apps are specifically designed to facilitate transactions.

Which of these examples is a development meant to connect the online and physical experience for the consumer?

Buy online - pick up in store (BOPIS)

E-commerce involves costs that may not affect brick-and-mortar retail. Which of the following is an example of an expense measurement for e-retail?

CPU (Costs per user)

Measuring engagement is important to retailers evaluating their website performance to drive sales. Which of these is an important way to evaluate online engagement?

Conversion Rates.

Describe an important tool that retailers use to evaluate customer engagement online.

Conversion rates.

Which of the following is an example of a single-channel retailer?

Cupcake bakery with multiple physical locations in chicago.

Many products are sold via infomercials broadcast on local or cable TV. This is an example of:

Distance Selling.

Why do stores' websites incur higher expenses than they might have expected?

Due to the cost of shipping, website maintenance, data science and so forth.

How does e-commerce provide more convenience to customers?

E-commerce sites are "always open" and location is not an issue.

Which of the following is NOT true about e-tailing?

E-tailing is largely simple, requiring only the web development of a website for a customer interface and back-end order processing. It is not true that e-tailing is simple and requires little work for implementation. Web devlopment, optimization, inventory control, data security, and order fulfillment aren't "one-time" costs. Instead they're recurring, which means that a retailer engaged in e0tailing must be resourced to maintain its online presence. This includes systems that reflect current inventory and are updated to show changes in merchandise, pricing, or promotional activity.

How can a retailer ensure that they're making the most effective investments to support multi-channel retailing?

Firms should track sales volume by channel, including an understanding of what they're investing to drive sales in each unique channel. In this way, theyll be able to determine cost per sale (CPS) or cost per acquisition (CPA) It is possible to track transactions by channel to see which contributes the most to overall sales. This may also reveal that some channels are relatively unimportant/unused by the customer target. And, by applying marketing costs by channel, firms understand the relative ROI.

Which of the following reflects some of the advantages of the specific channel of distribution?

In-store shopping experiences can be "hands on" interactive and supported by selling service from associates. Internet channels generally have lower costs thatn brick and mortar sales. Plus, because they're "always on," they are able to service consumers regardless of time and geography constraints. Retail stores provide shoppers an opportunity to engage directly with the product, while also leveraging in-store associates for help. Catalogues are high-engagement pieces that can be targeted to specific consumers, based on segmentation or their past purchase activity. Online shopping is a strong complement to other channels because consumers can be self-directed, shopping when and where it is convenient for them.

Store channels incur costs that may not be factors for non-store retailers. These may include:

Inventory, utilities, staffing, rent.

Most stores would say that the key benefit of their online business is which of the following?

It allows business expansion beyond physical locations for stores.

Explain how Starbucks uses its mobile app to increase customer interaction.

It can be used to locate nearby locations, place orders, and process payments. Further, it tracks consumer activity, awarding points that can e redeemed for merchandise on future visits. In this way, the app reduces friction related to making transactions and encourages repurchase and loyalty.

Which of the following is the best example of a retailer who uses catalogs to drive distance sales?

L.L Bean

For stores wanting to offer more convenience to their shoppers, how does e-commerce help?

Location is not an issue as e-commerce sites are "always open."

Some channels are more effective than others to encourage impulse buying. Which of the following is most useful for shoppers "on the go"?

Mobile commerce

Which kind of channel is most effective for impulse shopping and "buying on the go"?

Mobile commerce (apps)

L.L. Bean has operated a catalog and website for many years, but is branching into physical locations. Which of these is the best description of its operation?

Multi-channel Retailer

Duluth Trading is a catalog and website retailer which has started opening physical stores. What is the best description for this kind of retailer?

Multi-channel retailer.

Amway salespeople sell to customers but also enlist other salespeople for Amway. This is known as:

Multilevel marketing.

Avon representatives sell to consumers and also build networks of other representatives. This is known as:

Multilevel marketing.

Describe which of these best reflects what you, as a customer, would consider a seamless experience across channels:

Online, you visit the website of a brand that has a product you've considered buying. You complete a form, giving email address and cell number, to learn more about the product and receive "special offers." Within a day, you receive an email that offers the delux version of the product with several important upgrades. You also receive a text message from the company, which has a link to a video that shows the product in-action. Two days later, receieve another text message providing a discount code for the deluxe version of the product and a link to the company website. When you click the link, you're taen to the product page, which has a large button labeled "check-out." You follow the prompt and complete the transaction.

Taylor stops at her local card shop to buy a Valentine's card for her fiance. What makes the card shop a single-channel retailer?

Other than posting its location and operating hours, it does not operate a website.

Which of the following systems is used by many stores to manage pricing information on their e-commerce and m-commerce sites?

PIM (product information management)

What are some ways that the marketing mix (4Ps- product, place, price and promotion) might change, as channels of distribution change?

Place would absolutely change because the channel is changing. Place speaks directly to the channel. But, there could also be an impact on the other elements of the marketing mix like pricing and promotion. For example, an e-tailer, because of a lower cost structure might have different pricing or promotional activity than a brick and mortar retailer. Channel decisions can have an impact on all elements of the marketing mix. Some powerful retailers are so concerned about different channels of distribution that they require uniquely different products from manufacturers to ensure that they have a unique offering.

Which of these tactics is most important to adapt depending on the channel being used?

Pricing and Promotional strategies.

Name some typical costs incurred by store retail channels:

Rent, utilities, inventory, staffing.

E-commerce has advantages and disadvantages for retailers. Which of these is a key benefit?

Retailers can fulfill orders from their physical stores.

Which of the following is an advantage of operating an e-commerce site?

Retailers can fulfill orders from their physical stores.

Describe a way that technology has enabled retailers to move from multichannel to omnichannel:

Retailers post online customer reviews on their mobile sites.

Describe a key issue affecting the decline of printed catalogs today.

Showcasing products through e-commerce is more cost-effective

With a loyal and passionate customer base who boast about it online, this regional wine retailer operates two stores and hosts tasting sessions once a month. This is an example of:

Single Channel Retailing Their decision to distribute exclusively through brick and mortar stores means that they're using a single channel.

What's an example of enhanced customer support available through a store's website?

Stores websites can provide more detailed product information.

Describe a key marketing expense that e-commerce retailers need to factor into their budgets.

The cost of targeting consumers with an effective search optimization engine.

The web is an important tool for a firm like Apple because:

The firm can use its website and social media accounts to promote its products. Further, they can engage in SEM and SEO to ensure that consumers shopping for specific product solutions will find links to Apple products. And, by e-tailing, Apple can engage consumers without the limits of store hours, available staff, inventory on the sales floor or in back-stock.

E-commerce has risks and rewards for stores. Which of these can be considered a risk?

The increased chance of data breaches.

In what ways do mobile apps support engagement that websites do not?

They can reduce wait times and identify nearby store locations.

Apps have the following disadvantages:

They have design constraints and run on mobile devices with limited battery capacity.

Some retailers fail to offer a seamless experience to their customers. What is a possible reason?

They maintain separate buying organizations for e-commerce and physical business.

What makes Nike a good example of an Omni-channel brand and retailer?

They sell their shoes and apparel through their own website and through countless other retailers (on-line and off-line). Further, they have a presence on social media and use their .com property to engage customers. NIKE has developed assets a tall possible consumer touch-points to ensure that they're accessible, consistent, and provide service.

Why do apps have better customer engagement?

They're specifically designed for the needs of a mobile user to facilitate transactions.

Thinking of Starbucks as a retailer, which channels does it NOT use in the United States?

Vending.

Pick an illustration from these choices that best illustrates the "omnichannel" concept.

Walmart uses e-commerce to provide a seamless experience at its physical stores.