De La Salle – College of Saint Benilde

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Lecture 05: Web Based Retailing

PRESENTED BY:

Ian Agoncillo Pacaña

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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

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The Role of the Web

Project a retail presenceEnhance imageGenerate salesReach geographically-dispersed

customersProvide information to customersPromote new productsDemonstrate new product benefits

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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

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Web-Based U.S. Retail Sales

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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

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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

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1. Brochure Website

• Sells a few items

• Customers are directed to the nearest store

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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

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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

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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

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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.

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Checklist of Retailer Decisions in Utilizing the Web

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Reasons for Web Retailing

Using the Web– information– entertainment– interactive

communications

Shopping Online– selection– prices– convenience– fun

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Reasons NOT to Shop Online

• Trust

• Fear

• Lack of security

• Lack of personal communication

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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

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Question and Answer

Q & A

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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

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References

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