Characteristics of Offline and Online Retailing Channels

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What is the main advantage of online retailers over physical stores?

Ability to provide comparisons between products

According to Merrin-Webster, what is the definition of retailing?

Activities involved in selling goods to ultimate consumers for personal or household consumption

How does Neslin et al. define a channel in retailing?

A customer contact point or medium through which the firm and the customer interact

What is the main characteristic of internet retail channels?

Defined in terms of ease and speed of access

What is the definition of direct selling channels?

The sale of a consumer product or service in a face-to-face manner away from a fixed retail location

What are hybrid selling channels aimed at attracting?

Both segments – those who always shop online and those who always shop in stores

What is the key reason direct selling channels remain viable?

Consumers' interest in personal interactions and low cost of forming and running these channels

What are the challenges associated with direct selling channels?

Reliance on downstream intermediaries and individual contractors reselling at a markup

What is the main advantage of hybrid retail channels?

Ability to reach a wider market and gain a competitive advantage

What is a potential scenario for a retailer with a weak online presence?

The arrival of a new store might increase online sales

What does omni channel retailing pose as a challenge?

Blurring the distinction between online and physical retailing

What is a major constraint in online retailing according to the text?

Weight-to-value ratio for items being sold

Why is standardised pricing across online and physical stores a potential problem?

Physical stores will need to charge more due to real estate and other costs

What type of products are not optimal for online retailing due to shipping costs?

Low value items that weigh a lot, like concrete or rice

Why do most companies combine stores with online selling strategies according to the text?

To gain a competitive advantage by providing more than one way for consumers to access products

What is the reason behind direct selling channels being considered viable according to the text?

Low cost of forming and running these channels combined with consumer interest in personal interactions

Test your knowledge on the characteristics of offline and online retailing channels, including the differences between the two. Learn about the unique aspects of online retailing, such as product comparisons, and the advantages of in-store retailing, such as the ability to physically experience products.

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