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CHAPTER 8

A look At Information Gathering AND Processing In Retailing

INFORMATION FLOWS IN A
RETAIL DISTRIBUTION CHANNEL
IN an effective distribution channel, information flows freely and efficiently among
the three main parties,: supplier, retailer and consumer. This enables parties to
better anticipate and address each others performance expectations.
SUPPLIER needs these kinds of information;
1 From the retailer- estimates of category sales, inventory turnover rates, feedback
on competitors, the level of customer returns, and so on;
2 From the consumer- attitudes toward given styles and models, the extent of
brand loyalty, the willingness to pay a premium for superior quality, so on.

Retailers needs these kinds of information


1From the supplier- advance notice of new models and model changes, training
materials for complex products, sales forecast, justification for price hikes, and so on.
2 From the consumer; why people shop with the retailer, what they like and dislike
about the retailer, where else people shop . ect.

Consumer needs these kinds of information


1 From the supplier- assembly and operating instructions, the
extent of warranty coverage, where to send a compliant,

so

on.
2 From the retailer- where specific merchandise is stocked in the
store , the methods of payment accepted, the rain check
policy
when a sale item is out of stock.

RETAILERS CAN ASSIST OTHER


CHANNEL MEMBERS BY;
Allowing data to be gathered on their premises. Many research firms like to
conduct surveys at shopping centers because of the large and broad base of
shoppers.
Gathering specific data requested by supplies, such as how react to displays.
Passing along information on the attributes of consumers buying particular
brands and models. Since credit transactions account for a major portion of sales,
many retailers link purchases with consumer age, income, occupation, and other
factors

AVOIDING RETAIL STRATEGIES BASED


ON INADEQUATE INFORMATION
Retailer are often tempted to rely on nonsystematic or incomplete ways of obtaining
information due to time and cost, as well as a lack of research skills. The result can
be devastating.
Here are example:
1. using intuition a movie theater charges $10 for tickets at all times. The manager
feels that because all patrons are seeing the same movie, prices should be the same
for a Monday matinee as a Saturday evening.
2. continuing what was done before a toy store orders conservatively for the holiday
season because prior year sales were weak. The store sells out two weeks before the
peak of the season, and more items cannot be received in time for the holiday.
3.copying a successful competitors strategy a local independent bookstore decides
to cut the price of best-sellers to much the prices of a nearby chain book-store.

THE RETAIL INFORMATION


SYSTEM
A retail information system requires a lot of background information,
which makes the SecondaryData.com
Data gathering an analysis should not be regarded as a one-shot
resolution of a single issue.
They should be part of an ongoing, integrated process.
A retail information system (RIS) anticipates the information needs of
retail manager: collects, organizes and stores relevant data on a
continuous basis;
And directs the flow of information to the proper makers.

Data-base management
-a retailers gathers, integrates, applies, and stores information related
to specific subject areas.
DATA-BASE MANAGEMENT SHOULD BE APPROACHED AS A SERIES FIVE:
1 Plan the particular data base and its components, and determine
information needs.
2 Acquire the necessary information.
3 Retain the information in usable and accessible format.
4 Update the data base regularly to reflect changing demographics,
recent purchases, and so forth.
5 Analyze the data base to determine company strengths and weaknesses.

TO EFFECTIVELY MANAGE A RETAIL DATA


BASE, THESE ARE VITAL CONSIDERATION:
Is senior management knowledgeable in data-base strategies and does it know
how company data bases are currently being used?
Is there a person or department responsible for overseeing the data base?
Does the firm have data base acquisition and retention goals?
Is every data base initiative analyzed to see if it is successful?
Is there a mechanism to flag data that indicates potentials problems or
opportunities?
Are customer purchases of different products or company division cross-linked.?
Is there a clear privacy policy that is communicated to those in a data base.
Is the data base updated each time there is customer interaction.

Are customers, personnel, suppliers, and others invited to update their


personal data.
Is the data base periodically checked to eliminate redundant files?

A DATA WAREHOUSE HAS THE


FOLLOWING COMPONENTS
1. The data warehouse, where data are physically stored,
2. Software to copy original data bases and transfers them to the
warehouse
3. Interactive software to process inquiries,
4. A directory for the categories of information kept in the warehouse.
DATA MINING- is the depth analysis of information to gain specific
insights about customers, product categories, vendors and so forth.
Micromarketing- whereby the retailer uses diffentiated marketing and
develops focused retail strategy mixes.