8 Chapter 8 Information Gathering and Processing in Retailing.

Chapter 88

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

Data Mining and Politics

Gathering Information Through:-UPC (Universal Product Code)/EAN-13,

-RFID (Radio Frequency Identification),

-EDI (Electronic Data Interchange)

Manufacturer Item

*Omit “The Marketing Research Process except for Secondary Data Sources and Mystery Shoppers

Suppliers Need To KnowFrom the RetailerFrom the Retailer Estimates of

category sales Inventory turnover

rates Feedback on

competitors

Level of customer returns

From the CustomerFrom the Customer Attitudes toward

styles and models Extent of brand

loyalty Willingness to pay

a premium for superior quality

Retailers Need To Know

From the SupplierFrom the Supplier Advance notice of new models

and model changes Training materials Sales forecasts Justifications for price changes

From the CustomerFrom the Customer Why people shop there What they like and dislike Where else people shop

Consumers Need To KnowFrom the SupplierFrom the Supplier Assembly and

operating instructions

Extent of warranty coverage

Where to send a complaint

From the RetailerFrom the Retailer Where specific

merchandise is stocked in the store

Methods of payment acceptable

Rain check and other policies

Figure 8-2: A Retail Information

SystemData-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 mgrsCollects, organizes, and stores relevant data on a continuous basisDirects the flow of information to the proper decision makers

Figure 8-4: Retail Data-Base

Management in Action

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

Secondary Data SourcesInternalInternal Sales reports Billing reports Inventory records Performance reports

ExternalExternal 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

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 TestingChapter Eight Discussion Questions: 5, 6, 8, 10, 11