Retail Store Segmentation for Target Marketing

Applied Stochastic Models in Business and Industry, 2005

Starting from a brief literature review, this paper identifies key issues for future research in three related category management (CM) decision areas: assortment, shelf and stockout management. It elaborates on the interdependencies between the three CM issues, underscoring the need for a more integrated research approach. A common framework is presented of factors mediating and moderating consumer reactions to CM changes, which may provide guidelines for future research on reaction heterogeneity. The paper concludes with a discussion of the methodological challenges to be faced, ranging from advanced data collection procedures, over the development of more ingenious model structures, to the design of more powerful estimation and optimization routines. ; 21:383-392 K. CAMPO AND E. GIJSBRECHTS 390 4. CONCLUSION This paper briefly summarized the available literature in three key areas of category management (assortment, shelf and stockout management), elaborated on the interdependencies between the three CM issues and presented a 'common framework' of factors mediating and moderating consumer reactions to CM changes. In the course of the discussion, we identified areas where more insights were needed, and discussed the methodological challenges to be faced, ranging from advanced data collection procedures, over the development of more 'ingenious' model structures, to the design of more powerful estimation and optimization routines. These challenges are bound to trigger numerous future studies, by academics and analysts from practice, alike.

Inventory turnover differs across different retailers and operation modes employed by the retailers. Such a variation while undermining the usefulness of inventory turnover for performance analysis; requires particular attention. We perform an empirical analysis using sales data from a large retail firm for the year 2013-2016 for investigating the relationship of inventory turnover with mode of operations. The analysis reveals that the variation of inventory turnover among different mode of operations is much larger than variation of inventory turnover within each mode. So there is significant relationship between mode of operations and inventory turnover. This study inspects the influence of different channel structures on inventory turnover in a large supermarket, which has employed multiple modes of operations in different categories. Introduction Transfer of channel of power from manufacturers to retailors is actually a consequence of an advent of the dominant retailors. Traditionally retailers was buying the stock from multiple manufacturers and then sell them to customers as known as reseller mode. Retailer for a long time had been working only as an intermediary between producer and customer. Recently, manufacturers and retailers are forming new contractual relationships to minimize their risk and conflicts and increase the profit. Manufacturers are either renting space from the retailer to reach to customer directly or forming a revenue sharing partnership with the retailer. In this distribution mode the manufacturer pays the retailer a fraction of total sales revenue produced in the store or a fixed amount. It has gained prominence and popularity due to its significant potential for reducing channel conflict and can be beneficial for both retailer and the manufacturer.

Emerging Markets : Business and Management Studies Journal, 2020

Every retailers want to keep their customers from leaving the store. One of the conditions that can make customers leave the store is when they experience out of stock situation. Out of stock is a threat to all retailers, including in Giant Purwakarta. The existence of out of stock conditions can make consumers leave the store or stay in the store. The decision to stay or leave the store is influenced by the characteristics that the consumer have. This study examines how much influence of the customer’s characteristic to the customer response when Giant Purwakarta out of stock. The type of this research is descriptive quantitative by using Pearson Chi-Square formula to analyse the relationship between variables. The results show that there are three characteristics that have significant value with customer response. The three characteristics are: general time constraint, brand loyalty, and store loyalty. On the other hand, the three characteristics of consumers found have no signifi...

Failures occurring in each logistic chain node inevitably affect products availability in storage and distribution points, leading to stock-outs and subsequent customer dissatisfaction. Dealing with retailers which sell to final consumers, the economic estimation of the Shelf Out-of-Stock (OOS) loss is notoriously challenging. Moreover, in fashion and apparel stores, it is even difficult to estimate the size of OOS: due to the fickleness of the shopper, a OOS condition may even not lead to a lost sale. This paper focuses on the verification of the occurrence of out-of-stock events in fashion stores, aiming to get a quantitative evaluation of the potential lost sales through the analysis of the number of days of products unavailability. The number of OOS events due to early stock depletion will be consequently calculated, along with their consequences. The proposed procedure has been validated on real data of an important Italian fashion company.

2016

Retail Inventory Control Strategies by Mackie L. Johnson MBA, Ashford University, 2014 MSM, University of Management and Technology, 2009 BS, University of Phoenix, 2008 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2016 Abstract Despite using computerized merchandise control systems in retail, the rate of stockouts has remained stagnant. The inability to satisfy customer needs has caused a loss of 4% in potential revenue and resulted in dissatisfied customers. The purpose of this qualitative multiple case study was to explore cost-effective inventory control strategies used by discount retail managers. The conceptual framework that grounded the study was chaos theory, which helped identify why some business leaders rely on forecasting techniques or other cost-effective strategies as an attempt to prevent stockouts. The target population was comprised of discount retail managers loca...

International Journal of Physical Distribution & Logistics Management, 2022

Purpose Ensuring high on-shelf availability at low inventory costs remains an important challenge in retailing. Inaccurate inventory records, i.e., discrepancies between the stock records displayed in the inventory system and the stock quantity actually found in the retail store, have been identified as one of the most important drivers of retail stockouts in the past. The purpose of this work is to investigate the causes of positive inventory discrepancies in retailing, i.e., where there is more inventory on-hand than identified by the inventory system. Design/methodology/approach Based on input from retailers, we develop a simulation model of a retail store that considers various error-prone processes and study in a full factorial test design how the different operational errors may drive inventory discrepancies, paying special attention to the sources of positive inventory record inaccuracies. Findings This enables us to gain insights into the process parameters retailers need to adjust to avoid inventory records becoming inaccurate. In addition, we analyze how positive inventory discrepancies relate to stockouts to further our understanding of the role so-called phantom products may play. Originality While negative inventory discrepancies (where the stock that is available in the store is less than what the system displays) and their sources (theft, shrinkage, etc.) have been discussed quite frequently in the literature, the causes of positive inventory discrepancies (where the available inventory exceeds the system inventory) have received much less attention.

Inventory management is a very important aspect as it not only affects the Retailer’s financial performance but also the customer satisfaction. As it is obvious that properly managed stocks attracts large number of customers and this results in good sale. Improper stocking not only causes a negative impact on retailer’s sale, but also causes severe dissatisfaction amongst customers while going for shopping. The aim of this paper is to study the role of Inventory management techniques in increasing the customer’s footfalls, satisfaction and Retailer’s sale. The study is descriptive in nature and a self-designed questionnaire was used to collect the primary insight. In an on street questionnaire, the retailers and consumers were asked their opinion about Inventory management techniques. Present study is an attempt to explore the issues related to the parameters mentioned above.

Purpose – The purpose of this paper is to test a conceptual model by means of which we try to establish the influence of store satisfaction and other variables (gender, mobility and availability of alternative stores) on consumers' responses to out-of-stock (OOS) situations. Design/methodology/approach – The authors used a standardized questionnaire to gather data on consumer responses to OOS and then analyzed determinants including store satisfaction (for which reliability, validity and unidimensionality were tested). The survey was conducted in the four largest cities in Serbia. All respondents were interviewed randomly, through telephone calls, whereby 392 responses were gathered. The established hypotheses were tested by means of a multinomial logit model with the use of marginal effects. Findings – The results show that store satisfaction significantly affects three out-of-stock responses (store switching, postponement and product switching), whereas, positively in the case of product switching and postponement and negatively in the case of store switching. The results also show that store satisfied consumers, regardless of other factors, are not likely to switch stores in out-of-stock situations. Originality/value – As well as managerial implications, this paper included store satisfaction as an antecedent of consumer OOS responses for the first time. In addition, the impact of this variable on OOS responses was analyzed at both levels of the availability of alternative stores, gender and mobility.

Global retailing is evolving into hi-tech business Indian retail market is poised to follow the path with large number of global players eyeing the market. 10.6% of growth Indian Retail market has experienced between the year 2010 and 2012. Revolution in Indian Retail has been brought about with the change in demographic profile, increase in income levels, urbanization, technology and globalization. Growth comes along with challenges, which retailers have to manage in order to sustain in the competitive environment. It is imperative for the retailers to offer adequate service levels to sustain. The determinants of service levels for a retailer can be linked to availability and variety which aspects can be maintained through a healthy inventory. The paper attempts to address the objective of identifying determinants of effective inventory management. An exploratory survey was conducted among 60 retailers from Allahabad, Lucknow, and New Delhi dealing with consumer durables. Data was treated with factor analysis and Regression analysis. Four Factors of Retailer Size, Supplier Relationship, Service Level and Demand Uncertainty emerged as the determinants of effective inventory management. Positive relationship emerged between Retailer Size, Supplier Relationship, Demand Uncertainty and Effective Inventory Management through regression analysis.