Ch. 3

Benefits of direct selling channel

more personal and able to establish relationship

Multichannel supply chains and info systems (challenge)

most different channels require different skills as well as new resources; costs are very high and they have to divide products into individual packaging in order to supply all the different chains

Merchandise assortment (challenge)

assortment is usually different across channels to fit different segments (store sells touch/feel while internet sells look/see)

Centralized vs. decentralized multichannel retailing (challenge)

because each of the channels offer a unique set of benefits, the profiles of a retailer's customers who use the different channels are not the same

Benefits of catalog

builds brand image and drives sales to internet/store; CONVENIENCE, INFO, SAFETY

Benefits of automated retailing

convenience

Omnichannel

coordinated multichannel offering that provides seamless customer experience when using different channels

Benefits of TV retailing

customers can actually SEE the product or the demonstration

Pricing (challenge)

customers expect prices to be the same across channels while some retailers have to adjust their pricing strategy because of the competition they face in different channels

Consistent brand imaging (challenge)

has to be same across all channels

Reduction of channel migration (challenge)

if customers gather information from one of its channels, then buy from a channel hosted by a competition; retaining customers is a constant challenge

Multichannel

involves using more than one channel to sell and deliver merchandise/service (all independent of each other)

Types of non-store retail channels

1. electronic and mobile retailing 2. catalog 3. TV 4. direct selling channel 5. automated retailing

Challenges facing multichannel retailers

1. multichannel supply chains and information systems 2. consistent brand imaging 3. merchandise assortment 4. pricing 5. centralized vs. decentralized multichannel retailing 6. reduction of channel migration

Benefits of Electronic and mobile retailing

6 C's: 1. convenience 2. cost 3. choice 4. customization 5. communication 6. control