Disadvantages and advantages of merchandising

Answer 1

Advantages of Merchandising

n Merchandising materials can stimulate impulse purchases and higher per capita spending.

n Provides support for advertising campaigns.

Disadvantages of Merchandising

n Not very effective in building long-term loyalty for the destination.

n May contribute to visual clutter.

n May not be noticed by visitors or potential visitors.

Answer 2

Advantages of E-tailing:

1. Cost: The presence of software like e-tailware has made it an extremely simple task for online retailers to keep up-to-date with prices of the competitors. E-tailware software creates online catalogues and manages the business connected with doing e-tailing. The price comparison section allows consumers to quickly compare prices from a number of different e-tailers offering the same product/services such that consumer can compare different prices and pick best option.

2. Access (no physical location): The consumer does not have to travel or go anywhere to see the products/services of online retailers.

3. Inventory: Larger number and variety of inventory, both products and services can be placed online without worrying about limited space and product placement on shelves.

4. Flexible time: From the comfort of ones home, individuals can access the E-tailing sites 24/7 and even shop in the middle of the night. E-tailing is extremely convenient for last minute shoppers or people who forget little things like anniversaries and birthdays.

5. Globalization: In today's day and age, to be successful, one has to market its products globally. Small entrepreneurial ventures that specialize in niche products need to reach masses as their products would be in demand, not just in the location of the retail sales but in other cities and countries too. By going global through E-tailing, businesses increase likelihood of their survival, success and growth.

6. Consumer data collection through cookies and web usage: Unlike in-store, where customers get completely irritated when asked to give out their addresses before making a purchase, collecting cookies online from the users' computer is hassle-free. The cookies enable the E-tailers to study the online Surfing and shopping habits of the visitors and hence customize its site to show the product/service of interest to the user.

7. Customers avoid unpleasant sales environments-stress: A number of customers find salespersons annoying and do not like the idea of people (salespersons) asking too many questions. E-tailing is convenient for such individuals that make decisions and figure out the products on their own. Some are reluctant to confront a bad salesperson or just not interested. For such individuals, E-tailing is extremely helpful.

8. Promotional capabilities online: Promotional capabilities online are endless as one can place ads on sites relating to products/services they provide. For instance, if a major trade show is being organized, one can just place ads and get mass coverage at the even that specializes or caters to the businesses target market. With online marketing, customers have a much wider choice at fingertips to find the types of goods a customer is searching for. Also, through cookies, E-tailers can identify the likelihood of products being purchased at a certain price point. The most convenient thing for E-tailer is product placement. Online, the product placement is organized on the context of the previous transaction

Disadvantages of E-tailing:

1. Cost for website maintenance: Having an online retailing business is an added cost including maintenance, updates, server fees and other such related fees that add up and do seem like a lot when one is struggling to run their entrepreneurial venture with all their resources without failing.

2. Fulfillment problems: Slow delivery time is the concern mentioned by most online shoppers. Even though payments are made right away, the product takes approximately 5-7 days to reach the customer. Such is a disadvantage unless careful consideration is given to time management, accuracy of delivery and conditions of delivery.

3. Payment and security concerns: With major problems like credit card frauds and scams, people are worried that their private information will be used and abused if given out online. Even though the online industry sees a boom in E-tailing in the holiday season, throughout the rest of the year, E-tailing does not do well. Since 1995, consumers have become rather concerned than confident about online shopping. Clearly, the issue here is not being handled properly by E-tailers and if such situation is to continue, the future of E-tailing seems very unstable.

4. Lack of sensory appreciation of product/sense stimulation: Two things are to be noticed in this section. Firstly some products need sensual stimulation for an individual to make a purchase. For instance unless you already know what a perfume smells like. You would not go online and buy it. So that aspect of sensory appreciation is lacking in E-tailing. Secondly, customers find it tough to judge quality from online websites. Therefore, the five attributes that customers use to judge the quality of a product available online are:

- Ease of use.

- Privacy.

- Simple design.

- Consistency and flexibility.

- Good information.

5. Lack of sales persons and personal service: Some individuals seek 1-on-1 advice of sales employee and are unable to make online purchases without such help. These individuals are barely able to shop online unless they are in social shopping groups.

6. Lack of social environment: Seeing and understanding the company culture is of utmost importance to some shoppers. Some miss the company culture online and find it difficult to shop and make decision. The new era of shopping, also known as 'Social shopping" helps these social shoppers. The phenomenon social shopping mixes e-commerce and social networking where people log on to sites like Kaboodle.com, ThisNext.com and Stylehive.com. People share recommendations about products and stores, experts review the products and the whole online shopping experience is turned into a social gathering.

7. Technological issues: Some entrepreneurs feel helpless, as they have to be dependent on others to run their online retailing sites. They feel technologically behind and not able to run the company like they run their retail stores.

8. Difficulty in return of goods: Some consumers find that the idea of sending back a product that they don't like is extremely time consuming. Unless the retail store is nearby, some do not even bother to return the products.

Answer 3

selection contract wil be competitive open tendering