ee-Business -Business and Retailing Sistem e-Business (MG-652) Jurusan Manajemen Overbuilding and Excess Capacity Demographic Changes Peapod CUC International Virtual Vineyards Online Retailing Examples Changing Retail Industry Dynamics Web-based Travel Agencies Types of Consumers Types of Purchases Prepurchase Deliberation Prepurchase Comparison and Negotiation Process Distinct Phases Customer Behaviour Technology Improvements in Electronic Retailing eBusiness and Retailing Television Retailing CD ROM-based Shopping Online-based Shopping Retailing strategy Prepurchase Preparation Mercantile Models Channel Conflict Management Challenges Pricing Satisfying Shopping Experience Purchase Consummation Layout of Online Store Postpurchase Interaction Manage Brands Incentives 27 September 2002 Chandra Wibowo W. 2 Traditional Retail Outlet Type of Outlet Definition and Examples Shopping malls and department stores These include under one roof general merchandise, drug stores and groceries Supercenters These consist of three or more anchor stores with a total leasable area between 200,000 and 700,000 square feet. Factory outlet malls These primarily stock name-brand manufacturers’ item. These are growing in stature and popularity as well. Like power centers, factory outlet mall are gaining market share at the expense of shopping malls Warehouse clubs These are retailers offering common consumer products near wholesales price when purchased in bulk quantities. Mail order and catalog shopping These are retailers offering all kinds of product that can be ordered over the phone. The goods are often delivered with forty-eight hours 27 September 2002 Chandra Wibowo W. 3 Consumer Mercantile Activities P r o d u c t / s e r v ic e s e a r c h a n d d is c o v e r y in th e in f o r m a tio n s p a c e C o m p a r is o n s h o p p in g a n d p r o d u c t s e le c tio n b a s e d o n v a r io u s a ttr ib u te s P re p u rc h a s e in te r a c tio n N e g o tia tio n o n te r m s , e .g ., p r ic e , d e liv e r y tim e s P la c e m e n t o f o r d e r P u rc h a s e c o n s u m m a tio n A u th o r iz a tio n o f p a y m e n t R e c e ip t o f p r o d u c t C u s to m e r s e r v ic e a n d s u p p o r t ( if n o t s a tis tie d in X d a y s , r e tu r n p r o d u c t) 27 September 2002 P o s tp u r c h a s e in te r a c tio n Chandra Wibowo W. 4 Software Framework for Purchase Consummation Order fulfillment and delivery Payment settlement and fund transfer Transaction authentication / authorization W eb server with merchant services Content and products 27 September 2002 Chandra Wibowo W. 5 Management Issues in Online Retailing Retail Advertising and Marketing Issues Retail Operations Issues Retail Management Issues Advertising and Segmentation Product display and positioning Merchandising and inventory management (Buying and handling merchandise) Location (trade area) analysis and decision making (site selection) Brand and category management (establishing and sustaining an image) Retail management information systems collection (POS) Retaik SKU Decision support Retail organization and human resource management Retailing policies, practices, procedures and planning Pricing Promotion and Incentives Costumer service quality Financial dimensions of managing operations 27 September 2002 Chandra Wibowo W. 6 Student Assignments • Investigate the book online industry. Trace the largest strategic moves of Amazon.com (www.amazon.com) and Barnes and Noble (www.bn.com). Also identify other specialty online book vendors. List all the feature that you think attract many shoppers to a virtual bookstore. (personal assignment, must be submitted on week 10) • Make a transaction / purchase on a retail storefront and write a paper based on your experience on this transaction. The paper must describe whole transaction process and can be supported with charts, diagrams or screen capture if necessary. (team / group assignment, must be submitted on week 12) 27 September 2002 Chandra Wibowo W. 7