Chapter 9 – Online Retail and Services
1) Pros and cons of online retail
Pros:
Wider market reach (global customers)
Lower overhead costs compared to physical stores
Convenience for customers (24/7 access)
Personalization using data and analytics
Easier inventory and pricing updates
Cons:
Strong competition, often leading to price wars
High logistics and last-mile delivery costs
Security and privacy concerns
Returns and refunds management complexity
Lack of physical touch/experience of products
2) Omnichannel integration methods
Click and collect (BOPIS): Buy online, pick up in-store.
Ship-from-store: Use local store inventory to fulfill online orders.
Unified inventory: Integrate stock data across online and offline channels.
Cross-channel promotions: Discounts that apply in both online and offline.
Consistent branding: Same experience across app, website, and physical store.
3) Online retail business models (with examples)
Transaction fee model: Revenue from commissions (e.g., [Link], Agoda).
Direct sales model: Sell products directly online (e.g., Amazon, [Link]).
Subscription model: Customers pay recurring fees for access (e.g., Netflix, Dollar
Shave Club).
Marketplace model: Platform connects sellers and buyers (e.g., eBay, Shopee).
Advertising model: Retailers earn from ads displayed to users (e.g., Google
Shopping).
4) Customer acquisition in retailing
Search engine optimization (SEO)
Paid advertising (Google Ads, Facebook Ads)
Social media campaigns
Affiliate programs
Email marketing
Influencer partnerships
Referral programs
5) Tools for keyword analysis
Google Keyword Planner
SEMrush
Ahrefs
Moz Keyword Explorer
Ubersuggest
6) Google Analytics
A free tool from Google that tracks website traffic, user behavior, conversions, and marketing
performance. Retailers use it to measure customer journeys, identify high-performing
products, and optimize campaigns.
7) Extensions supporting e-marketplaces (example: Shopify)
Oberlo: Product sourcing and dropshipping
Klaviyo: Email and SMS marketing
Yotpo: Customer reviews and UGC
Bold Commerce: Upselling and subscription tools
Plug in SEO: Search engine optimization checker
8) Disintermediation vs. hypermediation
Disintermediation: Eliminating intermediaries (e.g., Nike sells directly to customers
online, bypassing retailers).
Hypermediation: Increase in the number of intermediaries (e.g., multiple platforms
like Amazon, eBay, Shopee between producer and customer).
9) Supply-push vs. demand-pull models
Supply-push: Manufacturers produce goods, push them to market regardless of
demand.
Demand-pull: Production responds to actual consumer demand (made-to-order).
Challenge: Manufacturers struggle to switch because supply chains and culture are
optimized for mass production, not flexible demand-driven systems.
10) Two major types of online service industries
Professional services: Banking, consulting, education.
On-demand/digital services: Travel booking, ride-hailing, food delivery.
Two features differentiating services:
1. Intangibility (no physical product)
2. Simultaneity (produced and consumed at the same time, e.g., a live consultation).
11) Channel conflict in retail
Occurs when online and offline sales channels compete against each other.
Example: A brand’s online store may undercut pricing offered by its authorized physical
retailers, creating tension.
12) On-demand service company business model
Platform-based: Connects service providers with customers (e.g., Uber, Grab,
DoorDash).
Revenue: Transaction fees, surge pricing, subscriptions.
Disruptive: Breaks traditional industries (e.g., taxis, hotels).
Controversial: Labor rights issues, regulatory battles, gig-economy criticism.
Chapter 10 – Online Content and Media
(Optional)
1) Basic location-based marketing tools
GPS targeting
Geofencing
Beacon technology
Local search ads
Mobile coupons
2) Why location-based marketing is attractive
Provides highly relevant, real-time offers
Increases conversion with context-specific promotions
Encourages foot traffic to nearby stores
Enhances personalization
3) Ad formats on mobile devices
Banner ads
Interstitial ads (full screen)
Native ads (integrated with content)
Video ads
Push notifications
In-app ads
4) Five elements of the social marketing process
1. Define objectives and audience
2. Create engaging content
3. Select platforms and channels
4. Engage and interact with the audience
5. Measure, analyze, and adjust strategy
5) Basic Facebook marketing tools
Facebook Pages (business presence)
Facebook Ads (targeted campaigns)
Messenger for customer support
Facebook Groups (community building)
Facebook Insights (analytics)
6) Basic TikTok marketing tools
TikTok Ads Manager (campaigns)
Branded hashtag challenges
Branded effects/filters
In-feed ads (native style videos)
Creator Marketplace (influencer collaborations)