Electronics and Nonstore Retailing

Chapter 3

ELECTRONIC AND NONSTORE RETAILING

Nonstore Retailing

                  - is a form of retailing in which sales are made to consumer without using stores.

TYPES OF NONSTORE RETAILERS

 1. Catalog and Direct mail retailer

 2. Direct selling retailer

 3. TV home shopping retailer

 4. Electronic retailer.

Different types of nonstore retailers are defined in terms of medium they use to communicate with customers; catalog and direct mail retailers communicate using printed material distributed through mail; direct selling retailers consumer through face to face interaction; TV home shopping retailers use television; and vending machine through the display of merchandise in the machine.

Electronic Retailing

          Is a retail format in which the retailer and customer communicate with each other through an interactive electronic network. In response to the customer's inquiries, the electronic retailer transmits information and graphics to the customer's computer or TV.

Factors affecting the growth of Electronic Retailing

 1. The ease with which customers can try innovation.

• Trying out electronic shopping. Consumers need to have access to the Internet and be able to communicate with electronic retailers through internet.

 2. The perceived risks in adopting the innovation.

• A critical concern of consumers is that credit card transactions are not secure when shopping on internet. But these security risks have not arisen in actual usage because almost all electronic retailers use sophisticated technologies to encrypt communications.

 3. The benefits offered by the innovation compared to the present alternatives.

• The critical benefit that electronic retailers can offer is the opportunity for consumers to search across the broad range of alternatives, develop a smaller set of alternatives based on their needs, and get specific information.

What types of Merchandise Will Be sold Effectively by Electronic Retailers?

The types of merchandise sold by electronic retailers depends on delivery costs, the consumer's need for immediacy, and the degree to which electronic retailers can provide prepurchases information that helps customers determine whether they will be satisfied with the merchandise. Successful electronic retailers will overcome the limitations of collecting touch-and-feel data by offering testimonials from other buyers, providing video information about the experience with the merchandise, or using information about brand size combinations that fit specific members of the household.