Retail Information Systems: Enhancing Business Strategies Through Data Analysis

1. Information Gathering and Processing in Retailing Chapter 8

2. Chapter Objectives • To Show Why Retailers Should Research • To Examine Retail Information Systems • To Describe the Marketing Research Process • To Discuss the Data Collection Process

3. Nonsystematic Research • Intuition • Status Quo • Copying a Competitor • Talk to Only a Few • Assume Past will Continue into Future Why Are These a Problem?

4. Retailer’s Philosophy and Objectives Strategic Plans (a) Data collection, analysis, and interpretation Information control center (b) Data storage and retrieval (c) Updating of files Retail Operations Retail Information System Environment Implementation Feedback

5. RIS Strengths • Information Organized and Broad • Regular Data Collection and Storage • Coordinated Strategy • New Strategies Devised Quickly

6. RIS Decisions • Role • Internal or Outsource • Cost • Technology • How Much Data • Data Dissemination • Data Storage

7. Acquire Necessary Information Retain Information in Usable & Accessible Format Update Data Base Regularly Analyze Data Base Data-Base Management Plan Data Base & Components Determine Information Needs

8. Data Base Information • Internal • Customer • Vendor • Product Category • External

9. Data-Base Types • Data Warehousing • Data Mining • Micromarketing

10. Data-Base Management in Action Data Warehousing Dissemination of Information Executives & Other Company Employees Channel Partners Customers Data Mining Micromarketing

11. Data Warehouse Components • Physical Storing • Software to Copy & Transfer Data • Interactive Software • Directory

12. Data Warehouse Advantages • Information Access and Inconsistency Problems Eliminated • Quick & Easy Access to Information by All • Data Centrally Stored

13. Gathering Information • Universal Product Code (UPC) • Electronic Data Interchange (EDI)

14. Examine Secondary Data Generate Primary Data Analyze Data Make Recommendations Implement Findings Marketing Research Process Define Issue or Problem to be Researched

15. Advantages of Secondary Data • Inexpensive • Quick • Several Sources • Information Otherwise Unavailable • Results Credible • Help Define Issue More Specifically

16. Disadvantages of Secondary Data • May Not Suit Purposes • Incomplete • Dated • Possible Inaccuracy • Possible Poor Data Collection Techniques • Reliability Not Always Known

17. Secondary Data Sources • Internal • Sales History • Any Information Collected by the Company • External • ABI/INFORM • Census Data • Government Publications • Commercial Research Houses • MANY more

18. Advantages of Primary Data • Fits the Specific Purpose • Current • Designed to Address the Issue • Source is Controlled • Methodology Designed for Specific Study • No Conflicting Data from Other Sources • Reliability Can Be Determined

19. Disadvantages of Primary Data • Expensive • Time consuming • Some Types of Information Cannot Be Acquired • Irrelevant Information May Be Collected

20. Primary Data Collection Considerations • Internal vs. External Collectors • Sampling Methodology • Probability • Nonprobability • Data Collection Methods • Survey • Observation • Experiment • Simulation

21. Sharing with Channel Members • Provide Informal Feedback • All Data to Be Collected Onsite • Gather Information for Suppliers • Pass Along Consumer Buying Characteristics • Participate in Single Source Data Collection

22. What You Should Know • Why Retailers Should Systematically Collect and Analyze Information for Strategy Development • The Role of Retail Information Systems • The Marketing Research Process and its Components • Retailer’s Role in Data Collection

23. Questions? Questions? Questions? Questions?