2. Introduction
⢠Consumers have wide choice
⢠Retailers- who understand the needs and wants of the
customer- are successful
⢠Many variables to identify and understand the retail
consumer
⢠Retailer that integrates the above information is able
to achieve profitability
⢠Thus retailers need to research on their customers â
who, and why for a decision
⢠This data can be used to select the target market and
integrate it into RIS- Retail Information system
4. Demographics
⢠Statistics about any given population base
⢠These variables are used to help retailers about selecting better
target markets/segments for business
⢠Retailer can use this data to help forecast product/service sales
⢠and to develop better communication with customers
⢠Includes data on population sizes,no of households in a given
market area,household sizes,income levels,education,gender age
occupation etc
⢠Most popular method and easiest to obtain
⢠Alone may not be enough but when tied to product buying
situation- leads to info about consumer preferences
⢠Most common- age ,income,ethinicity
5. Psychographics
⢠Refers to lifestyle analysis
⢠Provides insights into what consumers do
⢠includes info on activities,interests,and
opinions
⢠utilizes also VALS
6. Geographics
⢠helps to find out where the customers are
located
⢠divided into separate geographic area
⢠Nation,state,region etc
7. Behavioristics
⢠Subdivided into retailers current or potential
markets based on buying responses,product
usage pattern,product/store loyalty
⢠Develop user profiles and their responses to
retail mix elements
⢠Eg 80-20 rule
8. Consumer behaviour
⢠Relates to how consumers buy products
⢠Reflects to the totality of consumers decisions
wrt to acquisition,consumption,disposition of
goods services etc
⢠Clear picture will help retailer to understand
how to increase sales
⢠How they make purchase decisions- which
store to enter and which merchandise to
select
10. Problem awareness
⢠Consumer buys only when he is aware of the need
⢠Problems are associated with unsatisfied consumer
need
⢠Need recognition â conscious and subconscious
⢠Eg exam and textbook, food retailing
⢠Need to study needs to formulate as to why a
consumer buys from a particular outlet
⢠never fully stated
⢠Need to develop better understanding about customer
motivations
11. Information search
⢠Next step after problem recognition
⢠Consumer will search for information to solve the
problem
⢠Depending upon the time,effort and cost associated â
info search may take long or short time
⢠Internal search- based on experience
⢠External search- find out info
⢠Thus retailers need to provide info about itself so that
the consumers are aware when they attempt to satisfy
needs and wants
12. Alternative evaluation
⢠After search and gathering all information to
solve, the consumer must make the decision
for best alternative
⢠If routine- less time
⢠If new- long term phase- for this
phase, retailer must supply all info and prove
that how he can satisfy the needs and wants
14. Post purchase evaluation
⢠if consumer is happy- he will make further
purchases
⢠If not happy- will make reevaluation
⢠Customer service is important in this phase
⢠Happy customers- positive word of mouth
advt
⢠Cognitive dissonance: consumers doubt
about products â research and customer
feedback
17. RIS
⢠Data: News facts and figures which are
unorganized
⢠Information: A meaningful body of facts
organized around any topic
⢠Once raw data is gathered and organized- retail
information results
⢠Retailers managers need to inform themselves
with sufficient information to make decisions
possible
⢠Data used- from customers, the marketplace, the
retail environment, employees and competition
18. RIS
⢠A method for systematically
gathering, analyzing, storing,utilizing valuable retail
information and data
⢠facilitates the process of finding solutions to problems
⢠The process of
collecting, organizing, analyzing, disseminating data
relating to particular area is called as Market research
⢠can be high tech or low tech
⢠could be used in almost all areas of operation
⢠Generally accessible to all users but specific enough to
generate solutions to any retail problems
⢠RIS â could be used among store groups,vendors,internal
buyers,planners,dc
19. RIS
⢠Could be used in Supply chain mgt
⢠Data warehousing
⢠Distribution
⢠Pricing
⢠Merchanidising
⢠IMC
⢠Product acquisition
⢠Strategy
20. RIS
Inputs
-Mission
--Vision
- Objectives
- Situational
analysis
- Environment
scanning
- strategic plans
Processes
-Data collection
and
interpretation
- Control of
information
Systems
Data storage
,retrieval and
updates
Outputs
Data dissemination
to internal and
external public
21. Benefits of RIS
⢠Development of an effective RIS helps to ensure
that the system is fully integrated into the overall
retail management plan
⢠Effective RIS- allow for continuous data updation
⢠Necessary to be competitive in todays retail
environment
⢠Use RIS to access data regarding which items
have the highest turnover rates and where EOQ
items have to be ordered
22. RIS- facilitators
⢠Universal Product Code (UPC): Used along with a optic
scanner to read the bar code and gather the particular
data
⢠A barcode which stores all pertinent product
information
⢠Quality of codes is important : unscannable,
erroneous- concern- additional expense for improper
information fed into an RIS
⢠A typical UPC has a company identifier,specific SKU
built into it
⢠US and Canada- 12 digit
⢠EAN 13 EAN 8
23. RIS- facilitators
⢠Point of sale terminal (POS)
⢠Data from UPC collected and sent to centralized location for
analysis
⢠Used by managers to make decisions regarding
inventory,merchandise advt,accounting,planning etc
⢠POS â another facilitator in RIS
⢠A computer workstation designed to collect info from sale of
products or services
⢠Each workstation has optional peripherals- barcode
readers,scanners,invoice printers,magnetic card readers. Can be
fixed ,handheld or both.
⢠Effective in providing data to generate retail information
⢠RFID
24. RIS- facilitators
⢠Self checkout systems: A format in which
shoppers scan,bag and pay for their own
purchases
⢠Outsourcing: certain expertise
26. Marketing research
⢠Research conducted to identify and define
marketing opportunities and problems,
generate, refine and evaluate marketing
actions, monitor marketing performance and
improve understanding of marketing as a
process
27. Marketing Research process
1. Formulate the research problem
2. Conceptualize a research design
3. Create a data collection instrument
4. Select a sample
5. Write the research proposal
6. Data collection
7. Analysis and interpret the data
8. Conclusion
28. Formulate the research problem
⢠looks for cause
⢠Formulate the research problem
⢠Internal/External
⢠Clearly define the problem
Research design:
Depends on the type of data to be collected
Can be observation
Survey
Study
It is a guide for the entire process