Lecture 5 Web Based Retailing

De La Salle – College of Saint Benilde

VERTICAL SOLUTIONSVERTICAL SOLUTIONS

Lecture 05: Web Based Retailing

PRESENTED BY:

Ian Agoncillo Pacaña


Agenda

• Role of the Web• 5 Stages in Developing a Retail Web

Presence• Checklist of Retailer Decisions in Utilizing

the Web• Reasons Web Retailing• Reasons NOT to Shop Online• Recommendations for Web Retailers


The Role of the Web

Project a retail presenceEnhance imageGenerate salesReach geographically-dispersed

customersProvide information to customersPromote new productsDemonstrate new product benefits


The Role of the Web (Cont..)

Provide customer service (e.g., e-mail)Be more “personal” with consumersConduct a retail business efficientlyObtain customer feedbackPromote special offersDescribe employment opportunitiesPresent information to potential

investors, franchisees, and the media


Web-Based U.S. Retail Sales


Web Users in the U.S.

Gender Comparison (%) 48 Male 52 Female

Web Users by Age (%)

76

84

64

27

18-29

30-49

50-64

65 and Older

Reasons for Shopping in the Web (%)

51

78

43

Saves Time

Better Prices

More Choice


Five Stages of Developing a Retail Web Presence

1. Brochure Web Site

2. Commerce Web Site

3. Integrated Web Site

4. The ‘Webified’ Store

5. Site Integrated with Manufacturer Systems


1. Brochure Website

• Sells a few items

• Customers are directed to the nearest store


2. Commerce Website

• Involves Full Scale Selling

• Has Customer Service Support

• Not integrated with information systems– Prone to situations when customer orders

and later on find out that the item is not in stock


3. Integrated Website

• The site is integrated with the firm’s:– Buying System– Inventory System– Accounting Systems

• Lessens the need for separate reports

• Ensures that out-of-stock items are automatically not displayed from the site


4. The “Webified” Store

• Network systems bring Web connectivity to browser based point-of-sale, kiosk, or in-store terminals

• Lets the retailer sell items that are not being carried in a given store– Directs customers to other stores

where items are available

• Enables Web assisted sales


5. Site Integrated with Manufacturer Systems

• Site combines all the information sources needed for collaborative sales

• Manufacturers automatically replenish fast-selling items and ship directly to consumers, if so desired by the retailer.


Checklist of Retailer Decisions in Utilizing the Web


Reasons for Web Retailing

Using the Web– information– entertainment– interactive

communications

Shopping Online– selection– prices– convenience– fun


Reasons NOT to Shop Online

• Trust

• Fear

• Lack of security

• Lack of personal communication


Recommendations for Web Retailers

Develop or exploit a well-known, trustworthy retailer name

Tailor the product assortment for Web shoppers

Enable the shopper to click as little as possible

Provide a solid search engineUse customer information


Question and Answer

Q & A


For next meeting…

Case Analysis Paper Due Next Meeting:– Not More than 1 page of short bond paper– Single Space– Arial 10 Font– Individually Graded


References

• Berman, Barry & Evans, Jpel, Retail Management 10th Ed. (Person)

Lecture 5 Web Based Retailing

Education

Transcript of Lecture 5 Web Based Retailing