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附录1
MARKETIN&G R ETAIL
Revolutionary changes in technology are transforming how retailers conduct nearly every facet of business. As leaders in the retailing industry wrestle with big-picture questions about how to adapt and survive in a future of electronic commerce and out-of-store shopping, retail managers today are already creating innovative technological solutions to more traditional retailing challenges.
These include employee training, inventory management, delivery systems, market research, and customer relationship development. The potential impact of technological innovations in all areas of retail management, and the challenges associated with implementing them, is dominating the conversations among retail practitioners and academicians alike.
Not surprisingly, technology was a consistent thread connecting many of the educational programs, policy meetings, and trade show exhibits at the 87th Annual National Retail Federation Convention, held last January in New York. The topic is receiving more attention
between the covers of industry magazines and academic publications alike. The Center for Education and Research in Retailing at IU’s Kelley School of Business has identified technology as a critical initiative. It has committed resources for a state-of-the-art technology teaching classroom, is supporting cutting-edge marketing research in “virtual shopping,” and is planning educational programs on the use of technology in retail strategy and management.
The number and variety of technological applications to retailing issues currently being implemented in industry and research are staggering. Electronic commerce and the Internet are just part Sponsored by the Center for Education and Research in Retailing Kelley School of Business Indiana University of the picture-although researchers are beginning to bring that part into better focus. b
Electronic Commerce and the Internet Out-of-store shopping is, without a doubt, the hottest issue for the retailing industry right now. The National Retail Federation (NRF) reports that it receives a deluge of calls each week about the Internet’s impact. An Ernst and Young
survey of shopping on the Net, sponsored by the NRF and presented at its 1998 convention, indicates that 7 percent of U.S. households have purchased products or services on the Net. Moreover, half of those that own personal computers are now online. This means that 20 percent of American households have Internet access.
Among other results reported in the NRF study: Of those who are buying online, 40 percent have bought computer- related products, 20 percent have bought books, and 16 percent have purchased travel. In addition, the Net has changed the way consumers perform everyday activities. For example, 35 percent of consumers with online access regularly use it to do their banking; 43 percent use it to access news; and 29 percent research products and services on the Web. Who are these online shoppers? In
general, the study indicates they are well-educated, well-paid,
middle-aged, and male. Retailers will have to recognize and tailor their Internet product offerings to this potential audience. Ernst and Young also surveyed retailers and found that 34 percent of them sell or plan to sell products on the Net, whereas 47 percent say their products are ill-suited for Web sales. Lauren Freedman of the e-tailing group predicts that in the year 2000 and beyond, more than 50 million households will be online via personal computers, television, or
telephone, and more than 46 million Americans will be buying online, spending an average of $350 per month for a total of more than $16 billion. She suggests the following online merchandising “best practices”:
??building functional search systems that are fast, efficient, and lead to the buy;
??enhancing the shopping experience with impulse products;
??offering specially priced items for liquidation;
??delivering an experience that
entices both the browser and the buyer alike; and
??sporadically asking to know more about the customers to better merchandise to their needs.
Among the added value services Freedman says are key to online success are registries (including baby, toy, and bridal); gift reminder programs; address books; “personal shoppers” in the role of intelligent agents; and giftfinder services.
Retailers are raising many questions about electronic commerce, questions for which only partial answers are now becoming available, if at all. They want 2 Business Horizons / July-August 1998 to know about the Internet consumer, online selling and distribution, security issues, and the potential to make money on the Web. Although the mood among retailers is cautious when it comes to implementing electronic commerce, the enthusiastic reaction to the programs at the NRF convention demonstrate that they recognize the potential. F
Technological Applications to Retail Management
??Invento y Management.
With retail spending flat and apparel spending drifting down, retailers are facing problems of inventory breakdown, including
out-of-stocks, aged inventory, slow turnover, and low margins. Steven J. Nevill and David Rush of retailing consultant Kurt Salmon
Associates describe many real-world examples of improving sales and increasing inventory turnover through technology. One example they cite is the application of a sales-floor electronic inventory system to a traditionally slow-turn, SKI J-intensive business-a footwear retailer. The system allows management access to back room inventory and communication with the manufacturer so that inventory can be shipped next day to the customer or to the store. This system has resulted in minimized saftaty stock, virtual elimination of stock-outs (because inventory can be sourced through stores or manufacturers), and a sales increase of 20 percent from products the retailer chooses not to carry in the stores but is still able to provide to customers. Nevill and Rush are among those who challenge retailers to examine the “Virtual Inventory Concept,” the ability to provide inventory to the customer from any location.
??Employee Training and Turnover.
After experiencing years of resourcedraining employee turnover and rising training costs, J.C. Penney’s training department used
technology to make drastic changes in its philosophy and methods. In
1996, the retailer implemented a multimedia training strategy
using satellite-based interaction, computer- mediated conferencing, and CDROM programs to replace its traditional instructors and
materials. Deborah Masten of J.C. Penney and Wendy S. Probst of its training partner, Learning Systems Sciences, note that the multimedia approach resulted in zero errors at a new store opening and a 50 percent reduction in training time.
Interactive multimedia training is an excellent vehicle for skill building and core content, say Masten and Probst. On demand where and when it is needed, particularly for large audiences, it provides practice, drill, and remediation, coaching and feedback, and
individualized learning. It also boosts associate morale and confidence. Overall, they report, the multimedia training strategy
now being implemented at J.C. Penney is “better, standardized, more efficient, and more cost effective.”
??Customer Relationship Marketing.
Camelot Music’s automated frequent purchaser program is an example of using technology to develop customer loyalty. Bob Roberts, Camelot’s vice president of marketing, reports that a decline in the
prerecorded music industry has spiraled music retailers into price wars with one-stop discounters. Camelot
had used a “repeat performer” frequent purchaser program in the past as part of its relationship marketing initiative, but the program was a manual one using punch cards to keep track of customer purchase frequency and amount. It did not allow any customer tracking, and numerous cases of fraud and high liability plagued the company
because no deadline or tracking system was in place. A call came from within the company to discontinue the program because of its flaws, but the marketing department was worried about alienating a
significant customer base by doing so. In response, Camelot developed and implemented a data warehousing system with an automated repeat purchase program as an attached module.
Customers are given scan cards that track who they are and what they purchase at the SKU level, awarding points
for purchases with the option to create special award programs. Information on demographics and product preferences is gathered from participants and stored in the data warehouse, allowing the company to execute “customer specific marketing” in mailings and