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Retailing Research

Overview
Retailing
What is research?
Using the facts
Researching the market
Methods of data collection
Primary V Secondary
Quantitative V Qualitative
Consumers expectations
Malcolm Kirkups theory
The Consumer Profile
Use to the retail manager
The Quiz and questions
Definition: Retailing
Process of selling consumer goods directly to
consumers. Unlike the wholesaler, who sells
goods to other businesses for resale, the retailer
is the final agent through which products pass
on their way from manufacturer to user.
(Bangs 1998)

The retailer has to anticipate the needs of its


present and even future consumers

Larger retail firms consist of:


Discount stores, chain stores, department
stores, and supermarkets.
Retailing also includes:

House-to-house
canvassing,
Mail-order selling,
Vending machines,
Petrol stations, and
Street stalls
What is Research?

Research is not simply describing what


you find. (Marshall, 1997)
Making sense of what you find.
The more questions a specific area or
fact can answer that is, the more
scope it has the more useful it is to
science and society. (Marshall, I BID)
Theories

Vital in the pre-determining of consumer


behaviour patterns.
Strong Theories Used for prediction
Weak Theories Only sufficient for explanation
PARADIGMS
Paradigms are
particular ways of
thinking about and
sharing information with
items of a similar
nature.
Assumptions
Conceptualisations
Values
Attitudes
Orientations
Beliefs
Advantage and Disadvantage
Of Paradigms

Advantage: They prevent analysts


wasting time on problems they are not
best equipped to solve.
Disadvantage: They blinker
researchers to other valid ways of
looking at the issues.
Starting with the Facts?

Induction
Deduction

Induction is the ordering of facts


Deduction is the logical leap
process, always looking for the
next stage past the theoretical
ideas.
The circular process of science

OBSERVATION

EMPIRICAL
GENERALISATION

HYPOTHESIS
FORMULATION

THEORY
DEVELOPMENT
Source: OBrien, 1991
Researching the market
Retailers need to know who
is buying what, where and
when.
Analysing till receipts is
useful, but can only give
retailer information on
what has happened and
not what is going to
happen.
Next
Associated with edited
retailing
Edited retailing: The
involvement of offering
for sale a limited range
of coordinated products
for a specific client
group. (OBrien et al. 1988)
New Next lines:
Men,
Women who care about fashion Interiors,
first and price second (Ody 1998) Jewellery.
Methods of data collection

Primary research:

This type of data must be gathered by observing


phenomena or surveying respondents.
Dibb et al. 2000
Primary Research Techniques
Experimentation Data collection that involves
maintaining certain variables constant so that the effects of the
experimental variables can be measured
Marketing experimentation A set of rules and
procedures by which data gathering is organised to analyse and
interpret key marketing variables.
Sampling The selection of representative units from a total
population.
RANDOM SAMPLING
STRATIFIED SAMPLING
AREA SAMPLING
QUOTA SAMPLING
Primary Research Techniques contd..

Survey methods Interviews by mail and personal


interviews.

1. Mail surveys
2. Mail panels
3. Consumer purchase diaries
4. Telephone surveys
5. Computer assisted telephone interviewing
Primary Research Techniques contd..

6. Personal interview surveys


7. Depth interviews
8. Shopping mall/pavement intercept interviews
9. On-site computer interviewing
10. Focus group interviews
11. Quali-depth interviews and
12. IN-home interviews.
Primary Research Techniques contd..

Questionnaire construction Base document for


research purposes, providing the questions and structure for an
interview or self-completion and providing space for
respondents answers.

Observation methods Methods by which researchers


record respondents overt behaviour and take note of physical
conditions and events.
Methods of data collection

Secondary research:

Information compiled inside or outside the


organisation for some purpose other than the
current investigation.
Dibb et al. I BID
Syndicated Data Services
BARB Supply
television stations with
viewing estimates for
any specific time of day.
Nielsen AGB
Provide data about
products primarily sold
in the retail industry;
such as product sales,
own brand sales and
competing brands.
Quantitative V Qualitative
Quantitative: Meaning
the research aimed at
producing statistical data to
be expressed numerically.

Qualitative: Information
too difficult or expensive to
quantify. Includes subjective
opinions and personal
judgements not accessible
using quantitative methods.
Consumer Expectations

Consumers expect more


Improvements in quality and selection
of products within one retailer
Lower prices, due to higher sales
More choice at reasonable cost
ASDA Wal-Mart use buying power to
lower costs at all levels of the supply
chain
Malcolm Kirkups theory

A store is a locus of social and


informational, as well as material
exchanges, and therefore, methods are
needed to capture the social exchanges
within this arena
(Kirkup, p3, 1998)
Kirkups theory continued.
If the environment is
right, the customers
will keep coming
back
Every consumer
wants to feel special
Retailer must stay in
touch with consumer
demands/needs
Building a consumer profile

EDI Electronic Data Interchange

IOS Inter-organisational information


systems

Allows the retailer to be constantly up-


to-date with the minimum amount of
human intervention
Other methods
Loyalty cards

Store cards

Credit card
transactions

Need to know the


consumers every
move
The result

More specific promotional activities


More consumer focussed
Making the consumer feel special
Increasing the sales volume of the
business
Continually innovating techniques
Making sure they will be there in the
future!
THE QUIZ!
Answers
1. Observation, Empirical Generalisation, Theory development,
Hypothesis Formulation.
2. Nielsen AGB
3. Random, stratified, area and quota sampling
4. Mail Surveys, Mail panels, Consumer purchase diaries,
Telephone surveys, Computer assisted telephone
interviewing, Personal interview surveys, Depth interviews,
Shopping mall/pavement intercept interviews, On-site
computer interviewing, Focus Group interviews, Quali-depth
interviews and IN-home interviews
5. Providing and understanding how to create the correct
purchasing environment, not just knowing WHAT they buy.
6. Electronic Data Interchange

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