Research Process

Research Process: 1.

Define Research Problem/objective

2.

Determine Expected value of perfect information

3.

Research technique and Determine Data Collection method

4.

Determine the measurement techniques

5.

Research Design/ Sampling

6.

Data Processing and Analysis

7.

Determine Time And cost

8.

Define the ethics of research

9.

Prepare the research report

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Step1: Define Research Problem/objective a. PROBLEM DISCOVERY • • •

Symptom Problem Decision

b. PROBLEM DEFINITION • • • •

the purpose of the study the relevant background information what information is needed and how it will be used in decision making 2

c. RESEARCH OBJECTIVES • • •

Research question:. Development of hypotheses Research boundaries

3

Hypotheses development model Source •Theory •Management experience •Exploratory research

Research Purpose

Research Question

Hypothesis

Research design

Research Objective

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• Hypothesis Definition: Tentative theory or supposition provisionally adopted to explain certain facts and guide the investigation of others. • Types of Hypothesis: – Null Hypothesis (H0): – Alternative Hypothesis (HA or H1):

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Step2: Determine Expected value of perfect • The Valueinformation of Information – useful, – willingness to act on the information. – The accuracy of the information. – The level of indecisiveness that would exist without the information. – The amount of variation in the possible results. – The level of risk aversion. – The reaction of competitors to any decision improved by the information. – The cost of the information in terms of time and money. 6

• Characteristics of Valuable Information – Relevance – Quality – Timeliness – Completeness

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Step3: Research Technique and Determine Data Collection method • Basic Types of Research Approaches or Research Technique – qualitative research and quantitative research. 

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• Difference between Qualitative &Quantitative research

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Data collection technique or research Technique: •

Sources of Data - Primary and Secondary

• 4.

Method of collecting primary data Types of Surveys: • • • • • • • •

Face-to-face Interviews Mall-Intercept Executive Interview From-Home Telephone Interview Central Location Telephone Computer Assisted Telephone Interview Mail Surveys The Internet

2.– 10

2. OBSERVATION 3

Observation Research People People Watching Watching People People

Types Types of of Observation Observation Research Research

People People Watching Watching an anActivity Activity Machines Machines Watching Watching People People

Mystery Shoppers One-Way Mirrors

Audits

Traffic Counters Passive People Meter 36

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3. EXPERIMENTATION 4. Diary panels 3. Focus group (F.G.Ds): 4. Depth interviews

discussions

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Why ConsumersBuy Fashions • • • • •

Communicate with others Manage Appearance Express Self-Image Enhance Ego Impress Others

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What Creates Fashion?

Economic Factors Sociological Factors

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What Affects the Rate Fashion Spreads? Advantage Compatibility Complexity Trialability

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Theories of Fashion Diffusion Trickle-Down Theory

Mass Market Theory

Sub Culture Theory 17

Stages in the Fashion Life Cycle

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Chapter II – Introduction to retail Ajith Kumar C. C

Manufacturer’s Perspective The Four P’s of Marketing Retailers ofthe the Retailersare are part part of distribution channel distribution channel Product

Price

Distribution Promotion

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Distribution Channel PPT 1-4

Distribution Channel

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Decision Variables for Retailers Customer Service

Store Design and Display

Retail Strategy

Pricing

Merchandise Assortment

Location Communication Mix 22

Economic Significance of Retailing Over $2.5 trillion in annual U.S. sales -greater than medical care, housing, recreation combine

Employs 17% of population -about the same as manufacturing and growing

Management training opportunities Entrepreneurial opportunities

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India has joined the elite club of 12 countries with a trillion dollar economy. The country's GDP crossed the trillion-dollar mark for the first time in history when rupee appreciated to below 41-level against the US greenback yesterday, Swiss investment bank Credit Suisse said in a report published on Thursday. Countries like the US, Japan, Germany, China, UK, France, Italy, Spain, Canada, Brazil and Russia have all breached trillion-dollar GDP level in the past. 24

Nature of Retail Industry is Changing

To Today’s Retailer

Mom and Pop Store

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Retailing is a High Tech Industry

- Selling Merchandise over the Internet

- Using Internet to manage supply chains - Analyze ROS data to tailor assortments to stores - Computer systems for merchandise planning

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Hot Topic’s Retail Mix Customer Service

Store Design And Display

Location

Retail Strategy

Communication Mix

Merchandise Assortment

Pricing 27

Macy’s Retail Mix Customer Service

Store Design And Display Retail

Location

Strategy

Communication Mix

Merchandise Assortment

Pricing 28

Macy’s Retail Mix Location Strategy Enclosed Malls

Customer Service Store Display And Design

Communication Mix

Merchandise Assortment

Pricing 29

Macy’s Retail Mix Assortment Strategy

Customer Service

Location

Many Items in Apparel and Soft Home

Store Design and Display

Communication Mix

Pricing

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Macy’s Retail Mix Location Customer Service

Pricing Strategy Merchandise Assortment

Store Design and Display Communication Mix

Moderate with Frequent Sales

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Macy’s Retail Mix Customer Service

Communication Mix

Store Design And Display

Location

Merchandise Assortment Pricing

TV, Newspaper Ads and Special Events

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Macy’s Retail Mix Store Design and Display

Customer Service

Ring with Displays

Location

Merchandise Assortments

Communication Mix

Pricing

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Macy’s Retail Mix Customer Service Modest Location Merchandise Assortment Store Design and Display

Pricing

Communication Mix 34

Wal-Mart’s Retail Mix Customer Service

Store Design And Display

Location

Retail Strategy

Communication Mix

Merchandise Assortment

Pricing 35

Wal-Mart’s Retail Mix Location Strategy

Free-standing Stores

Customer Service Store Display And Design

Communication Mix

Merchandise Assortment

Pricing

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Wal-Mart’s Retail Mix Assortment Strategy

Customer Service

Location

Large Number of Categories Few Items in Each Category

Store Design and Display

Communication Mix

Pricing

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Wal-Mart’s Retail Mix Location Customer Service

Pricing Strategy Merchandise Assortment

Store Design and Display

Communication Mix

Low, EDLP

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Wal-Mart’s Retail Mix Customer Service

Communication Mix

Store Design and Display

Location

Merchandise Assortment

Pricing

TV and Newspaper Insert Ads

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Wal-Mart’s Retail Mix Store Design and Display

Customer Service

Basic, Special Displays for Products

Location

Merchandise Assortments

Communication Mix

Pricing

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Wal-Mart’s Retail Mix Customer Service Limited Location Merchandise Assortment Store Design and Display

Pricing

Communication Mix 41

Chapter III - Types of Retailers Ajith Kumar C. C

Types of Retailers Food Retailers Mom and Pop Stores Convenience Stores Supermarkets General Supercenters

Merchandise Retailers

Department Stores Specialty Stores Discount Stores Category Specialists Off-Price Retailers Warehouse Clubs

Food Retailers Mom and Pops – Supermarkets -Cars, highways and TV to build brands -Knowledgeable customers – self service -Perishable vs. packaged goods

Big Box Retailers -Warehouse Clubs -Supercenters -Hypermarkets

Convenience Stores

Types of General Merchandise Retailers Discount Stores Specialty Stores Category Specialists Home Improvement Centers Department Stores Drugstores Off-Price retailers Value Retailers

Non-store Retail Formats Electronic Retailing Catalog and Direct Mail Direct Selling Television Home Shopping Vending Machines

Types of Nonstore Retailers

Examples of Service Retailers Type of Service

Service Retail Firms

Airlines Automobile maint/repair Automobile rental Banks Child care centers Credit cards Education Entertainment parks Express package delivery Financial services Fitness Health Care Home maintenance

American, Delta, British Airways, Singapore Airways Jiffy Lube, Midas, AAMCO Hertz, Avis, Budget, Alamo Citibank, NCNB, Bank of America Kindercare, Gymboree American Express, VISA, Mastercard University of Florida, Babson College Disney, Universal Studios, Six Flags Federal Express, UPS, US Postal Service Merrill Lynch, Dean Witter Bally’s, Gold’s Gym Humana, HCA Chemlawn, MiniMaid, Roto-Rooter

Merchandise/Service Continuum

Chapter III – Components of Merchandising Ajith Kumar C. C

Merchandizing Components Analysis

Planning

Control

Acquisition

Handling

Chapter IV – Theories of Retail Ajith Kumar C. C

Theories of Retail Institution Change CYCLICAL THEORIES Wheel of retailing (price/service) Accordion Theory (assortment)

EVOLUTIONARY THEORIES Dialectic process (retailer) Natural selection (customer)

Wheel of Retailing

The Dialectic Process THESIS

Department store High margin Low turnover High price Full service Downtown location Plush facilities

ANTITHESIS

Discount store Low margin High turnover Low price Self-service Low rent location Spartan facilities

SYNTHESIS

Discount department store Average margins Average turnover Moderate prices Limited services Suburban locations Modest facilities

Source: Reprinted with the permission of Macmillan College Publishing Company from Retailing, 4th Edition, by Dale M. Lewison. Copyright © 1991 by Macmillan College Publishing Company, Inc.