Retail research

Retail research:

n  Retailers need to know who is buying what, where and when.

n  Analysing till receipts is useful, but can only give retailer information on what has happened and not what is going to happen.

Classifications and Methodology of Retail Research :

Retail Research Components

·        Store location

·        The consumer

·        Merchandising

·        Advertising and Promotion

·        Customer services

·        Human Resources

·        Sales methods

·        Competition

Store Location

·        Trade area size

·        Trade area demographics

·        Degree of competitive saturation

·        Appropriate retail environment

·        Sufficient parking available

·        Public transportation

·        Shopping center competition

·        Competition’s interest insite

The Consumer

·        Will merchandise selection meet customer’s needs?

·        Does the consumer have adequate finances?

·        Will store hours be conducive to consumer’s needs?

·        Do the market psychographics fit with the retailer’s philosophy?

·        Are consumers shopping habits in line with retailer’s policies?

·        Does the customer match the store’s image?

·        Will the targeted market purchase from the Web site?

·        Is the catalog’s format appropriate?

Merchandising

·        Is the brand assortment right?

·        Will private label merchandise compete effectively with merchandise at discount establishments?

·        Is the price right?

·        When should new merchandise be introduced?

·        What is the target turnover rate?

·        How should markdowns be handled?

·        Are automatic markdowns appropriate for the company?

·        Would frequent markdowns benefit the turnover rate?

·        How many merchandise resources should be used?

Advertising and Promotion

·        Which media should be used to advertise?

·        What proportion of the budget should be for newspaper advertising?

·        What should be the goals of the advertising budget?

·        How often should catalogs be sent?

·        What format is to be used for Web site promotions?

·        What special events should be used?

·        How should visual merchandising be handled?

·        Is a traditional format or an “environmental” format better for the retail store?

Customer Services

·        Would personal shoppers increase sales?

·        Should there be a charge for gift wrapping?

·        Will shipping charges apply to Internet purchases?

·        Would a child-care center increase sales?

·        Will sales associates with foreign language skills increase sales?

·        What food facilities are appropriate?

·        Should there be a charge for alterations?

·        Should expanded shopping hours be introduced?

Human Resources

·        Which personnel sources provide the best employees?

·        What motivational techniques will reduce turnover?

·        What training methods should be used?

·        What is the role of HR in new employee selection?

·        What benefits and services should be available?

Sales Methods

·        Should there be self service or personal selling?

·        Should employees be assigned specific areas or placed in busiest areas?

·        Should computer stations be used in place of sales associates?

Competition

·        Should there be a system to assess the competition’s inventory?

·        Should the quantity of competition be assessed before location decisions are made?

The Research Process

·        Identification of Problem

·        Defining the Problem

·        Gathering Data

·        Selecting a Sample

·        Collecting and Tabulating Data

·        Data Analysis and Report Preparation

·        Making the Decision

Methods of Gathering Data

Secondary Data                                                        

Company records                                                                       

Governmental agencies                                                                       

Trade associations

Private research organizations

Periodicals

 Primary Data

         mail Questionnaires

Telephone questionnaires

On-line questionnaires

 Intercept surveys

Observations

Focus groups

Questionnaire Considerations

·        Length of questionnaire

·        Easily understood language

·        Sequential question arrangement

·        Specific questions

·        Multiple choice answer format preference

Trends in Retail Research

·        Increased use of focus groups

·        Outside agency use

·        Organizational studies

·        Human resources retention

·        Location analysis