Multichannel Retailing

Multichannel Retailing

1. Retailers that sell merchandise or services through more than one channel

2. Retail channel

   • retailer sells & delivers merchandise & services. Most common channel is the store.
     • Nonstore channels --> internet, catalogs, direct mail, direct selling, TV home shopping, automated retailing.
   • internet
     • the offering of products & services for sale is communicated to customers over the internet
   • catalog
     • nonstore retail channel in which the retail communicates to costumers
       • catalogs mailed to customers
   • direct selling
     • salespeople interact with customers face-to-face in convenient location
       • demonstrate merchandise benefits &/or explain a service
         • party plan system
           • customers act as hosts, inviting friends to try the product
         • multilevel system
           • independent businesspeople serve as distributors, recruit other people
         • pyramid scheme
           • when you sell to other distributors and not end users
   • TV Home shopping
     • TV programe that demonstrates merchandise
       • by phone, internet & TV remote
       • Infomercials
       • Direct-response advertising
   • Automated Retailing
     • merchandise or service are stored in machine
   • Benefits by retail channel
     • Combinations of channels to overcome limitations of each
     • Store Channel
       • Using all 5 senses to interact with the product before buying
     • Personalization
       • Internet for personalizing stuff, store for getting personalized info to compare and make a good choice
         • personalized offers for each customer
       • live chats: instant customer service
     • Perceived Risks in Electronic Shopping
       • Security of credit cards
       • privacy violations

3. Benefits of multichannel

   • It allows you to increase customer satisfaction and loyalty