Information Gathering and Processing in Retailing

Information Flow

• Information flow is the movement of information between people and systems. Efficient and
secure information flows are a central factor in the performance of decision making, processes
and communications. 
Information flow in retail distribution channel

• In an effective retail distribution channel information flows freely and effciently among the three main
parties

1. Supplier

2. Retailer

3. Consumer
Suppliers Needs to Know

F R O M T H E R E TA I L E R • FROM THE CONSUMER

• Estimates of category sales • Attitudes towards styles and models

• Inventory turnover rates • Extent of brand loyality

• Feedback on competitors • Willingness to pay a premium for

• Level of customer returna superior quality

Retailers Need to Know

FROM SUPPLIERS FROM CONSUMERS

• Advance notice of new models and model changes • Why People shop there

• Training materials • What they like or dislike

• Sales Forcasts • Where else people shop

• Justifications for price changes

Consumers Need to Know

FROM SUPPLIERS F R O M R E TA I L E R E

• Assembly and operating instruction • Where specific merchandise is stocked in the store

• Extent of warranty coverage • Method of payment acceptable

• Where to expand complaint • Rain check and other Policies

The Retail Information System

A retail information system (RIS) anticipates the information needs of retail managers, collects , organizes
and stores relevant data on a continous basis and directs the flow of information to the poor decision makers
.