Retailing Chapter 8

Front 1

Electronic Data Interchange (EDI)

Back 1

Lets retailers and suppliers regularly exchange information through their computers with regard to inventory levels, delivery times, unit sales, and so on, of particular items.

Front 2

Marketing Research in Retailing

Back 2

Collection and analysis of information relating to specific issues or problems facing a retailer.

Front 3

Marketing Research Process

Back 3

Embodies a series of activities: defining the issue or problem, examining secondary data, generating primary data (if needed), analyzing data, making recommendations, and implementing findings.

Front 4

Issue (Problem) Definition

Back 4

Step in the marketing research process that involves a clear statement of the topic to be studied.

Front 5

Secondary Data

Back 5

Those gathered for purposes other than addressing the issue or problem currently under study.

Front 6

Primary Data

Back 6

Those collected to address the specific issue or problem under study. This type of data may be gathered via surveys, observations, experiments, and simulation.

Front 7

Internal Secondary Data

Back 7

Available within a company, sometimes from the data bank of a retail information system.

Front 8

External Secondary Data

Back 8

Available from sources outside a firm.

Front 9

Probability (Random) Sample

Back 9

Approach whereby every store, product, or customer has an equal or known chance of being chosen for study.

Front 10

Nonprobability Sample

Back 10

Approach in which stores, products, or customers are chosen by the researcher - based on judgment or convenience.

Front 11

Survey

Back 11

Research technique which systematically gathers information from respondents by communicating with them.

Front 12

Semantic Differential

Back 12

Disguised or nondisguised survey technique, whereby a respondent is asked to rate one or more retailers on several criteria; each criterion is evaluated along a bipolar adjective scale.

Front 13

Observation

Back 13

Form of research in which present behavior or the results of past behavior are observed and recorded. It can be human or mechanical.

Front 14

Mystery Shoppers

Back 14

People hired by retailers to pose as customers and observe their operations, from sales presentations to how well displays are maintained to service calls.

Front 15

Experiment

Back 15

Type of research in which one or more elements of a retail strategy mix are manipulated under controlled conditions.

Front 16

What are the 2 information needs of a supplier?

Back 16

1.) From the retailer—estimates of category sales, inventory turnover rates, feedback on competitors, the level of customer returns, and so on;

2.) From the consumer—attitudes toward given styles and models, the extent of brand loyalty, the willingness to pay a premium for superior quality, and so on.

Front 17

What are the 2 information needs of a retailer?

Back 17

1.) From the supplier—advance notice of new models and model changes, training materials for complex products, sales forecasts, justification for price hikes, and so on;

2.) From the consumer—why people shop with the retailer, what they like and dislike about the retailer, where else people shop, and so on.

Front 18

5 steps of data-base management

Back 18

a.) Plan the particular data base and its components and determine information needs.

b.) Acquire the necessary information.

c.) Retain the information in a usable and accessible format.

d.) Update the data base regularly to reflect changing demographics, recent purchases, and so forth.

e.) Analyze the data base to determine company strengths and weaknesses.

Front 19

Data warehousing

Back 19

a recent advance in data-base management whereby copies of all the data bases in a firm are maintained in one location and accessible to employees at any locale. A data warehouse has the following components:
1.) The data warehouse, where data are physically stored;
2.) Software to copy original data bases and transfer them to the warehouse;
3.) Interactive software to allow inquiries to be processed;
4.) A directory for the categories of information kept in the warehouse.

Front 20

Data mining

Back 20

the in-depth analysis of information to gain specific insights about customers, product categories, vendors, and so forth. The goal is to learn if there are opportunities for tailored marketing efforts that would lead to better retailer performance.

Front 21

6 steps in the marketing research process as applied to retailing

Back 21

a.) Define issue or problem to be researched.

b.) Examine secondary data.

c.) Generate primary data.

d.) Analyze data.

e.) Make recommendations.

f.) Implement findings.

Front 22

6 Advantages of Primary Data

Back 22

-They are collected to fit the retailer’s specific purpose.
-Information is current.

-The units of measure and data categories are designed for the issue being studied.

-The firm either collects data itself or hires an outside party. The source is known and controlled, and the methodology is constructed for the specific study.

-There are no conflicting data from different sources.

-When secondary data do not resolve an issue, primary data are the only alternative.

Front 23

5 Disadvantages of Primary Data

Back 23

-They are normally more expensive to obtain than secondary data.
-Information gathering tends to be more time consuming.

-Some types of information cannot be acquired by an individual firm.

-If only primary data are collected, the perspective may be limited.
-Irrelevant information may be collected if the issue is not stated clearly enough.

Front 24

6 Advantages of Secondary Data

Back 24

-Data assembly is inexpensive.

-Data can be gathered quickly.

-There may be several sources of secondary data-with many perspectives.

-A secondary source may possess information that would otherwise be unavailable to the retailer.

-When data are assembled by a source such as Progressive Grocer, A.C. Nielsen, Business Week, or the government, results are usually quite credible.

-The retailer may have only a rough idea of the topics to investigate. Secondary data can then help to define issues more specifically. In addition, background information about a given issue can be gathered from secondary sources before undertaking a primary study.

Front 25

6 Disadvantages of Secondary Data

Back 25

-Available data may not suit the purposes of the current study because that have been collected for other reasons.
-Secondary data may be incomplete.
-Information may be dated.

-The accuracy of secondary data must be carefully evaluated. Thus, a retailer needs to decide whether the data have been compiled in an unbiased way.

-Some secondary data sources are known for poor data collection techniques; they should be avoided.

-In retailing, many secondary data projects are not retested and the user of secondary data has to hope results from one narrow study are applicable to his or her firm.