Retailing Research

Overview
 Retailing
 What is research?
 Using the facts
 Researching the market
 Methods of data collection
 Primary V Secondary
 Quantitative V Qualitative
 Consumers expectations
 Malcolm Kirkup’s theory
 The Consumer Profile
 Use to the retail manager
 The Quiz and questions

Unlike the wholesaler. the retailer is the final agent through which products pass on their way from manufacturer to user. and supermarkets. department stores.” (Bangs 1998)  The retailer has to anticipate the needs of its present and even future consumers  Larger retail firms consist of: Discount stores. chain stores. . who sells goods to other businesses for resale.Definition: Retailing  “Process of selling consumer goods directly to consumers.

Retailing also includes:  House-to-house canvassing. and  Street stalls .  Mail-order selling.  Petrol stations.  Vending machines.

What is Research?  “Research is not simply describing what you find.” (Marshall.” (Marshall. the more scope it has – the more useful it is to science and society. I BID) . 1997)  Making sense of what you find.  “The more questions a specific area or fact can answer – that is.

Theories  Vital in the pre-determining of consumer behaviour patterns.  Strong Theories – Used for prediction  Weak Theories – Only sufficient for explanation .

 Assumptions  Conceptualisations  Values  Attitudes  Orientations  Beliefs .PARADIGMS  Paradigms are particular ways of thinking about and sharing information with items of a similar nature.

.  Disadvantage: They blinker researchers to other valid ways of looking at the issues. Advantage and Disadvantage Of Paradigms  Advantage: They prevent analysts wasting time on problems they are not best equipped to solve.

.Starting with the Facts?  Induction  Deduction  Induction is the ordering of facts  Deduction is the logical leap process. always looking for the next stage past the theoretical ideas.

1991 .The circular process of science OBSERVATION EMPIRICAL GENERALISATION HYPOTHESIS FORMULATION THEORY DEVELOPMENT Source: O’Brien.

 Analysing till receipts is useful. where and when.Researching the market  Retailers need to know who is buying what. but can only give retailer information on what has happened and not what is going to happen. .

1988)  New Next lines: Men. “Women who care about fashion Interiors. Next  Associated with edited retailing  Edited retailing: “The involvement of offering for sale a limited range of coordinated products for a specific client group.” (O’Brien et al. . first and price second” (Ody 1998) Jewellery.

” Dibb et al. 2000 .Methods of data collection  Primary research: “This type of data must be gathered by observing phenomena or surveying respondents.

”  RANDOM SAMPLING  STRATIFIED SAMPLING  AREA SAMPLING  QUOTA SAMPLING .Primary Research Techniques  Experimentation – “Data collection that involves maintaining certain variables constant so that the effects of the experimental variables can be measured”  Marketing experimentation – “A set of rules and procedures by which data gathering is organised to analyse and interpret key marketing variables.”  Sampling – “The selection of representative units from a total population.

Computer assisted telephone interviewing .  Survey methods – “Interviews by mail and personal interviews. Consumer purchase diaries 4.Primary Research Techniques cont’d..” 1. Mail panels 3. Telephone surveys 5. Mail surveys 2.

Quali-depth interviews and 12. 6. Personal interview surveys 7. Focus group interviews 11. . IN-home interviews. Shopping mall/pavement intercept interviews 9. Depth interviews 8.Primary Research Techniques cont’d.. On-site computer interviewing 10.

”  Observation methods – “Methods by which researchers record respondents’ overt behaviour and take note of physical conditions and events.” ..  Questionnaire construction – “Base document for research purposes. providing the questions and structure for an interview or self-completion and providing space for respondents’ answers.Primary Research Techniques cont’d.

Methods of data collection  Secondary research: “Information compiled inside or outside the organisation for some purpose other than the current investigation. I BID .” Dibb et al.

Syndicated Data Services  BARB – Supply television stations with viewing estimates for any specific time of day. .  Nielsen AGB – Provide data about products primarily sold in the retail industry. own brand sales and competing brands. such as product sales.

Quantitative V Qualitative  Quantitative: Meaning the research aimed at producing statistical data to be expressed numerically. . Includes subjective opinions and personal judgements not accessible using quantitative methods.  Qualitative: Information too difficult or expensive to quantify.

due to higher sales  More choice at reasonable cost  ASDA Wal-Mart use buying power to lower costs at all levels of the supply chain .Consumer Expectations  Consumers expect more  Improvements in quality and selection of products within one retailer  Lower prices.

Malcolm Kirkup’s theory  “A store is a ‘locus of social and informational. and therefore. methods are needed to capture the social exchanges within this arena” (Kirkup. as well as material exchanges’. 1998) . p3.

the customers will keep coming back  Every consumer wants to feel special  Retailer must stay in touch with consumer demands/needs .Kirkup’s theory continued.  If the environment is right.

Building a consumer profile  EDI – Electronic Data Interchange  IOS – Inter-organisational information systems  Allows the retailer to be constantly up- to-date with the minimum amount of human intervention .

Other methods  Loyalty cards  Store cards  Credit card transactions  Need to know the consumer’s every move .

The result…  More specific promotional activities  More consumer focussed  Making the consumer feel special  Increasing the sales volume of the business  Continually innovating techniques  Making sure they will be there in the future! .

THE QUIZ! .

Depth interviews. Electronic Data Interchange . stratified. Random.Answers… 1. area and quota sampling 4. Nielsen AGB 3. On-site computer interviewing. Quali-depth interviews and IN-home interviews 5. Consumer purchase diaries. Focus Group interviews. Personal interview surveys. not just knowing WHAT they buy. Theory development. Hypothesis Formulation. Providing and understanding how to create the correct purchasing environment. Telephone surveys. 6. Observation. Computer assisted telephone interviewing. Mail panels. Shopping mall/pavement intercept interviews. Mail Surveys. Empirical Generalisation. 2.