E-retailing

314 Pages·2004·3.374 MB·English

by  Fenech, Tino, Merrilees, Bill, Dennis, Dennis Charles E

e-Retailing
Most experts agree that the advent of Internet retailing has transformed the market-
place, but students of the subject have until now had to search far and wide for
comprehensive up-to-date analysis of the new business landscape. Coverage of the
recent dot.com boom and bust obscured the fact that e-retailing is now firmly estab-
lished in global business, promising growth rates that will continue to rise globally to
over £1 billion in 2004.
This much needed book provides readers with a guide to the implementation and
operation of a successful e-retailing business, and has been written for students, entre-
preneurs and researchers at all levels. By identifying and explaining the underlying
principles of e-retailing and its relationship with conventional retail methods, this
research-based book leads readers through this exciting and emerging subject.
Case studies include:
(cid:1) iPod
(cid:1) Nike
(cid:1) Amazon
(cid:1) eBay
(cid:1) McDonald’s
(cid:1) Nokia.
With accessibly written features such as Key Learning Points, Questions, Think Points
and Further Reading, e-Retailing is core reading for anyone using, studying or
researching the Internet or e-retailing.
Charles Dennisis a Chartered Marketer and Senior Lecturer in Marketing and Retail
Management at Brunel University Business School, UK. Tino Fenechis Senior Lecturer
in Marketing, Specialist in e-Commerce, at Griffith University, Australia. Bill Merrilees
is Professor and Head of the Marketing Department at Griffith Business School,
Griffith University, Australia.
Routledge e-Business series
Routledge e-Business is a bold new series examining key aspects of the e-Business
world, designed to provide students and academics with a more structured learning
resource. Introducing issues of marketing, Human Resource Management, ethics, oper-
ations management, law, design, computing and the e-Business environment, it offers a
broad overview of key e-Business issues from both managerial and technical perspec-
tives.
Marketing the e-Business
Lisa Harris and Charles Dennis
e-Business Fundamentals
Edited by Paul Jackson
e-Retailing
Charles Dennis, Tino Fenech and Bill Merrilees
e-Economy: Rhetoric or Business Reality?
Edited by Leslie Budd and Lisa Harris
e-Retailing
Charles Dennis,
Tino Fenech and
Bill Merrilees
First published 2004
by Routledge
2 Park Square, Milton Park, Abingdon,
Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Ave, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2005.
“To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.”
© 2004 Charles Dennis, Tino Fenech and Bill Merrilees
All rights reserved. No part of this book may be reprinted or reproduced
or utilized in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
Dennis, Charles E.
E-retailing/by Charles Dennis, Tino Fenech, and Bill Merrilees. – 1st ed.
p. cm.
Includes bibliographical references.
1. Internet marketing. 2. Electronic commerce. 3. Retail trade
–Computer network resources. 4. Teleshopping. I. Fenech, Tino.
II. Merrilees, Bill. III. Title.
HF5415.1265.E467 2004
658.8′72–dc22 2004003128
ISBN 0-203-45852-4 Master e-book ISBN
ISBN 0-203-34436-7 (Adobe eReader Format)
ISBN 0–415–31141–1 (hbk)
ISBN 0–415–31142–X (pbk)
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1 Charles Dennis: To my wife Mary who endured the deprivation while
2 I wrote late into the nights; to my daughters Trish and Juliet; to my
3111 mother Joan; and to Ross and Janine.
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Tino Fenech: Dedicated to my patient and ever present cheer leader:
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6 my wife Clara; and to my great parents, who had more faith in me
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Bill Merrilees: My contribution is dedicated to integrity as the core
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capability that helps you get through all sorts of crises; and to Dale
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as my integrity partner in life.
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Contents
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3111 List of illustrations viii
4 List of contributors xi
5 Acknowledgements xiii
6 Introduction xiv
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8 1 The world of e-retailing 1
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2 e-Retailing in practice 26
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1 3 Integration of e-retailing into an organization 55
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4 Understanding and communicating with the e-consumer 76
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5 Information search on the Web 112
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5 6 e-Store design: navigability, interactivity and web atmospherics 129
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7 e-Service 149
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8 8 Branding on the Web 170
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9 e-Malls 186
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1 10 e-Retailing models 202
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11 m-Shopping 226
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12 Multi-channel success and the future of e-retailing 244
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5 Answers 268
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7 Glossary 278
8 Index 285
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Illustrations
FIGURES
1.1 The growth of online shopping 15
1.2 e-Retailing as percentage of UK shopping 16
1.3 What e-shoppers buy 16
2.1 Exemplar strategic positioning of books e-retailers 30
2.2 Paid online spending growth rates for the US for 2003 34
2.3 Online systems are using computing facilities to substitute for
the physical trail of merchandise 43
2.4 Based on a series of online questions, the virtual model approximates
the image of the Web shopper 44
2.5 Relative quantities of purchases from Amazon 46
2.6 Search result options to search for similar titles 48
2.7 Ansoff matrix 50
3.1 e-Commerce digitization 60
3.2 Strategic options for retailers 61
3.3 The Online Retail Relationship Matrix 65
3.4 The Purchaser–Purveyor Loyalty Matrix 67
4.1 Why Internet-connected consumers do not e-shop 83
4.2 Comparing ratings — Internet vs. West London shopping centre 83
6.1 Simplified representation of a grid layout e-retail store 138
6.2 Simplified representation of a free-flow layout e-retail store 139
6.3 Simplified representation of a freegrid layout e-retail store 139
6.4 An integrated framework for e-store design 142
7.1 Web ancillary services that influence e-retail trust 155
8.1 An integrated framework for e-branding 177
8.2 Snake position maps for three e-retail booksellers 184
10.1 The influence of the five retail participant groups within the business
environment 203
10.2 The electronic shopping ‘ES’ test 216
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ILLUSTRATIONS
10.3 Product characteristics and the five senses 217
10.4 Scoring product characteristics 217
10.5 Familiarity/confidence and electronic shopping 218
10.6 Scoring familiarity and confidence 219
10.7 Consumer categories and electronic shopping potential 220
10.8 Scoring customer attributes 221
11.1 Evolution of retailing 227
11.2 Internet hosts, growth rates 228
11.3 Time spent on the Internet 229
11.4 Visitors to a website in each category compared to a baseline of
June 2002 229
11.5 Broadband adoption by Internet users 230
11.6 Broadband penetration 230
11.7 Wireless networking hardware 232
11.8 Phones are already under development 232
11.9 What m-shoppers buy (mobile phone Internet and PDA) 235
11.10 Many new phones are Wi-Fi enabled 239
12.1 Future customers will identify themselves to the retailer with a
loyalty card 252
12.2 The new shopping trolley 253
12.3 A sample of a bar code 254
12.4 Sample alternative broadcasts from RFID tags 254
12.5 RFID tag 255
12.6 Sample alternative broadcasts from RFID tags 256
12.7 Interactive kiosks come in a variety of styles 259
12.8 Audio-visual shopping trolley with EPSA technology 260
12.9 Assessment of the technology usage in the Extra Future Store 263
12.10 Positive evaluation of the benefits of technology in the Extra
Future Store 264
TABLES
2.1 Price test results for CDs 32
2.2 Evaluation of the e-shopping potential of CDs using the ES test 33
4.1 The principal benefits expected by consumers from e-shopping 81
4.2 The principal benefits expected by business customers from
e-purchasing 82
7.1 Positive critical incidents affecting e-service 158
7.2 Negative critical incidents affecting e-service 159
7.3 Logit regression differentiating high-service and low-service sites 160
7.4 OLS regression determining overall site e-service rating 162
9.1 Determinants of brand attitudes in two Australian e-malls 194
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