The Future of Retail: Rise of Click-and-Mortar Essay

The Future of Retail: Rise of Click-And-Mortar| The focus on keeping shoppers in-store when examining a product in a store and then comparing prices online| | [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. ]| Abstract Purpose: Method: Results: Conclusions: Table of Contents 1. Introduction…………………………………………………………………… P. 1 2.

Methods……………………………………………………………………….. P. 12 3. Results………………………………………………………………………… P. 28 4. Discussion…………………………………………………………………….. P. 34 5. References…………………………………………………………………….. P. 48 6. Tables…………………………………………………………………………. P. 52 7. Figures………………………………………………………………………… P. 54 Generational trends and tastes lead to icon methods of marketing for every generation. From 1996 when Larry Page & Sergey Brin launch Google we had the world’s most dominant search engine that changed everything in the advertising industry.

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No longer were customers passive consumers of media. Now the Internet permitted them to search for what interested them, when it interested them. In short order, Google recognized its power and began selling access to its visitors in a number of ways, including versions of keyword ads and banner ads. For a very long time, customers have done their research online, and then gone into stores to buy things, from consumer reports to millions of enthusiast blogging sites rating and product influence have never been adequately mirrored by advertising.

Marketing has consisted of strong online markets, such as Amazon and Ebay or offline markets as with many of the original big box stores. Appropriately marketers either target on- or offline shoppers because of the difficulty of matching on- and offline behaviors. As we are seeing the evolutional push of the mobile online presence waking retailers to address the crossover of in store, online, and savvy consumers.

Search plays a big part here too, driven by the fact that almost three-quarters of smartphone users use the internet while they’re in a shop. Again consumers known as ‘showroomers’ has meant very little to everyone but the car dealer industry; the profile for this consumer is referred to in my ways Generation Y, Millennials, and Gen Next is instinctly adoptive of technology and compares prices, delivery times and so on across a number of retailers while in-store. Showrooming is both a challenge and an opportunity for retailers.

Opportunities arise while people are conducting those searches, they’re looking for alternative places to buy; a challenge due to the online experience is dominating with fluid a shopping environment where competitors, ratings, reviews, and deals are only a click away. Despite this rapid change in customer behavior, Google suggests in a study (conducted by Sterling Research and SmithGeiger, independent market research firms). The report surveyed 1,088 US adult smartphone Internet users in July 2012. The problem (and opportunity) is big… While nearly 75% of users prefer a mobile-friendly site, 96% of consumers say they’ve encountered sites that were clearly not designed for mobile devices. This is both a big problem and a big opportunity for companies seeking to engage with mobile users. Mobile-friendly sites turn users into customers The fastest path to mobile customers is through a mobile-friendly site. If your site offers a great mobile experience, users are more likely to make a purchase. When they visited a mobile-friendly site, 74% of people say they’re more likely to return to that site in the future * 67% of mobile users say that when they visit a mobile-friendly site, they’re more likely to buy a site’s product or service Not having a mobile-friendly site helps your competitors A great mobile site experience is becoming increasingly important, and users will keep looking for a mobile-friendly site until they find one that works for them. That means your competitors will benefit if your site falls down on the job (and vice versa). 61% of users said that if they didn’t find what they were looking for right away on a mobile site, they’d quickly move on to another site * 79% of people who don’t like what they find on one site will go back and search for another site * 50% of people said that even if they like a business, they will use them less often if the website isn’t mobile-friendly Non-mobile friendly sites can hurt a company’s reputation It turns out that you can lose more than the sale with a bad mobile experience.

A site that’s not designed for mobile can leave users feeling downright frustrated, and these negative reactions translate directly to the brands themselves. * 48% of users say they feel frustrated and annoyed when they get to a site that’s not mobile-friendly * 36% said they felt like they’ve wasted their time by visiting those sites * 52% of users said that a bad mobile experience made them less likely to engage with a company * 48% said that if a site didn’t work well on their smartphones, it made them feel like the company didn’t care about their business”

If search works because people are looking for help with a decision, mobile display is also being used to drive in-store traffic. Sandwich chain Subway’s first step was to build a mobile site; its second was a mobile banner campaign to drive people either to that site, or into stores. “We used mobile display to promote the value proposition, and we also had a button so users could click through to the mobile site store finder,” says Wallwork. Starbucks also used mobile banners in its 2011 New Media Age Effectiveness Awards Grand Prix winning campaign.

Part of the activity aimed to promote Starbuck’s filter coffee. Agency OMD came up with an expandable banner that featured a link to Google Maps to show the nearest Starbucks locations. From maps, to apps, mobile sites and banners, different ways of utilizing the channels are possible. Thus, there is evidence that customers use the online channel for their research and buy at a physical store (Verhoef, Neslin, and Vroomen 2007), or they may use the physical store for research and buy online (Van Bal and Dach 2005, Kucuk and Maddux 2010).

Neslin and Shankar (2009) point out those research shoppers come in two profiles: loyal research shoppers who search and purchase from different channels of the same firm and competitive research shoppers who search using one channel of a firm and buy from a different channel of the competing firm. Thus customers may use Target’s physical stores to evaluate products but purchase in Amazon’s online store if online prices are lower. Customers’ benefit from using the physical store to evaluate products as many product attributes are non-digital in nature and cannot be properly assessed online (Lal and Sarvary 1999).

This clearly leads to brick and mortar stores losing potential “convenience buyers” or buyers that came to the store to fill the instant gratification of buying, owning and experiencing the product immediately. Tech savvy, millennial generations are of the same generation that was effected by the greatest economic down fall since the great depression. This has instilled the value of a good deal and getting the right place, even if it means waiting.

To not distort the perception of this generation, we have the instant gratification bug just as badly, when we have the money and we are given predictions and tease with release dates we cost cut normalcy to ensure we are able to indulge infrequently 89% percent of those surveyed said that the economy is affecting their day-to-day lives, prompting more than half, 51%, to cut back on their entertainment budget, 43% to reduce their spending on food and 40% to skip vacation. Thirty-two percent are looking for an additional job to make ends meet and 26% have downgraded their living situation.