Michael Levy,
Babson College Barton A Weitz,
University of Florida
ISBN: 0072553928 Copyright year: 2004
New to the 5th Edition
New Chapter on Customer Relationship Management
The new Chapter 11 examines how retailers are using customer databases to build
repeat business and realize a greater share of wallet from key customers. These
customer relationship management activities exploit the 80-20 rule-20 percent
of the customers account for 80 percent of the sales and profits. In this chapter,
we discuss how retailers identify their best customers and target these customers
with special promotions and customer services. Some topics covered in this new
chapter are
Why retailers want to provide special services for their best customers.
How retailers use customer databases to determine who are their best customers.
How retailers build loyalty from their best customers.
What retailers do to increase their share of wallet.
How retailers balance customer privacy concerns with the provision of personalized
promotions and services.
New Chapter on Multichannel Retailing The new Chapter 3 describes the opportunities and challenges retailers face interacting with customers through multiple channels—stores, catalogs, and the Internet. While the e-commerce bubble has burst for e-retailing entrepreneurs, traditional retailers are investing in using the Internet to complement their stores. In this chapter, we discuss the unique issues that store-based retailers face when communicating with and selling merchandise to customers over the Internet. This new chapter addresses issues such as
The unique customer benefits offered to customers by the different channels—stores, catalogs, and the Internet.
How multichannel retailers provide more value to their customers.
Factors that will affect the growth of the Internet channel.
Why most pure electronic retailers fail.
Why most pure electronic retailers fail.
The key success factors in multichannel retailing.
How might technology affect the future shopping experience.
More Extensive Treatment of New Technologies and Methods Retailers are using innovations to improve operating efficiencies and deliver more value to their customers. Some examples of these retail innovations reviewed in the fifth edition are
Use of the Internet to provide information and sell products and services to customers (Chapter 3).
Application of geographic information system (GIS) technology for store location (Chapter 8).
Internet applications for effective human resource management (Chapter 9).
Quick response supply chain management systems (Chapter 10).
Analysis of customer databases to determine customer lifetime value (Chapter 11).
Implementation of frequent shopper programs (Chapter 11).
CPFR (collaboration, planning, forecasting and replenishment) systems (Chapter 12).
Sophisticated inventory management systems (Chapter 13).
Reverse auctions for buying merchandise (Chapter 14).
Use of profit optimization decision support systems for setting prices in different markets and taking markdowns (Chapter 15).
Development of targeted promotions using customer databases (Chapter 16).
Decision support systems for scheduling sales associates (Chapter 17).
Creation of planograms to optimize the sales and profits from merchandise categories (Chapter 18).
Use of in-store kiosks and the Internet in improve customer service (Chapter 19)
Greater Emphasis on International Retailing We examine international retailing strategies ranging from those used to enter new international markets to the global sourcing of merchandise. The expanded number of international retail examples are designated with a special global icon. As retailing evolves into a global industry, it is imperative that students understand how firms adapt their business practices to the cultural and infrastructure differences in international markets. The fifth edition includes expanded treatment of non-U.S. global retailers such as Zara, Sephora, H&M, and Carrefour as well as discussions of issues confronting U.S. retailers as they expand from their domestic base. For example,
Cultural impacts on buying behavior (Chapter 4).
Keys to successful entry into international markets (Chapter 5).
Evaluation of international growth opportunities (Chapter 6).
Global sourcing of merchandise (Chapter 14).
Employee management issues in international markets (Chapter 9 and 17).
Expanded Treatment of Brand Development Issues To differentiate their offering and build a competitive advantage, retailers are placing more emphasis on developing their brand image, building a strong image for their private-label merchandise, and extending their image to new retail formats. Issues related to the development of brand images and private-label merchandise are discussed in more detail from both a merchandise management and a communications perspective.
Updated Material on Legal and Ethical Issues Confronting Retailers_These issues include store design in light of the American with Disabilities Act (ADA), sexual harassment, discrimination in hiring and promotions, managing diversity, glass ceilings, and purchasing and pricing merchandise.
Go Out and Do It Exercises Found at the end of each chapter, these exercises suggest projects that students can undertake by either visiting local retail stores, surfing the Internet, or using the Student CD accompanying the textbook. The exercises are designed to provide a hands-on learning experience for students.
Monthly Newsletter with Short Cases These cases are based on recent retailing articles appearing in the business and trade press. Instructors can use these short cases to stimulate class discussions on current issues confronting retailers. The newsletter is e-mailed to instructors and archived on the text’s webpage.
Fifteen New Cases These include cases on Sephora, American Eagle Outfitters, Gadzooks, Dollar General, Abercrombie & Fitch, Enterprise Rent-a-Car, Home Depot, Build-A-Bear, Nordstrom, Avon, Sears, and Toys “R” Us Online. All of the 31 cases in the textbook are either new or updated with current information. A number of the cases have 10- to 12-minute videos complementing the written case.
Completely Redesigned Student CD The CD contains four new exercises. It now provides an opportunity for students to evaluate international markets, examine the financial performance of a retailer, edit the assortment in a merchandise category, develop a merchandise budget plan, and evaluate various markdown strategies.
To obtain an instructor login for this Online Learning Center, ask your local sales representative.
If you're an instructor thinking about adopting this textbook, request a free copy for review.
2004 McGraw-Hill Higher Education