Retail Marketing

Group Assignment
Literature Review

‘Non-store Retail Formats & their Value Proposition”

Submitted to: Prof. Sapna Parashar

Date of Submission: 16/09/2020

Submitted by: Group 11 (Sec A)

191110 – Apoorv Sundrawat
191149 – Sakshi Tibrewala
191203 – Abhinav Jain
191226 – Harsh Verma
191306 – Aditya Hariyani
 Internet users’ adoption of Web Retailing: User and Product Dimensions

Fenech, T. and O’Cass, A. 2001, "Internet users’ adoption of Web retailing: user and
product dimensions", Journal of Product & Brand Management, Vol. 10 No. 6, pp. 361-381.

Fenech and Aron O’ Cass (2001) in an attempt to understand the new format of retailing
governed by technology and buying consumer characteristics explained that, earlier the focus
of research was more on descriptive nature rather than understanding the potential consumers
and factors that could influence and impact their behavior. The overall results indicate that
attitude does play a huge role in web retail and the value that the consumers get affect the level
of adoption of this mode of buying in the long run. One of the crucial finding that came out
was that the internet user’s characteristics that contribute positively to web retailing are web
security, shopping innovativeness and perceived usefulness sitting at home or from word of
mouth. Another insight that was obtained which was against the expected notion before the
research work was that price importance is not a major influencer on the attitude of consumers
in buying through web retailing. Lastly an interesting behavior stood out from the sample of
research data set was consumers look to buy on through online mode in the same manner as
they do anywhere else i.e., they seek good display and interface, ease of purchase and user
friendly and fun experience which could make a huge difference for the success in retail.
 Developing An Online Shopping Value Framework For Consumers Of
Non-Store Fashion Brands.

Dlodlo, N. (2014), International Business & Economics Research Journal (IBER), 13(6),
1359. https://doi.org/10.19030/iber.v13i6.8925

The Internet has changed the value chain of fashion, with an upward trend towards increasing
numbers of online shops patronising fashion shoppers. Although customers are becoming more
educated and realising the importance of cutting out the middle man, marketers have
established an enhanced awareness of the non-store brand 's value, which is what consumers
are actually paying. It takes a different range of tactics and instruments to market fashion
brands online than to market and mark any other product. This may be because fashion brands
thrive on mixing feeling, image and understanding.

While traditional shopping experiences have established a correlation between providing

superior value, consumer loyalty and purchasing intentions, researchers have stressed the need
for more research on online-based customer value. To obtain an impartial perspective, a
theoretical foundation was initially established through a literature review on shopping value
dimensions.

The study shows how three dimensions of online shopping value affect attitude and ultimately,
behavioural intention to purchase online fashion brands:

1. Attitude is a weak criteria in determining the preference towards online retailing as

consumers might still be inclined to traditional formats.
2. The importance of online shopping is an significant indicator of attitude towards online
brands. Therefore, to improve buying intent, online retailers can begin to improve
shopping value by offering shoppers opportunities for utilitarianism, hedonism and
social involvement.
3. The opportunities for co-creation and interactivity of information offer an incentive for
the shopper to be more engaged rather than a passive situation during the online
experience and thereby improve his or her fashion brand choices.
 Socio-Economic perspective of Non-store-based retail formats in India

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT ISSN

2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 8 Issue 4
(2017)

The retailing is the largest private industry in india and second largest employer after
agricultural sector. Retailing business has become a part of the people life and the way of doing
business has changed a lot. In India retail business has shown a tremendous growth every week
or month new Indian or foreign retail store opens up with the different retail formats which led
to the increase in the competition among players. The brick and mortar type of retail formats
used to be traditional style of retail formats but with the increase in the competition the way of
doing business has changed. The concept of Non-store retailing has emerged as the new format
where the selling of goods and services takes place out the stores. The non-store retail
distribution can be divided into direct selling and distance selling. The non-store retailing
format has gained momentum in India as they provide online services seven days a week,
provides delivery options and also help consumers in saving time.

The types of non-store retail format are as direct selling, direct marketing, vending machine,
world wide web and other emerging retail formats.

Direct selling – It refers to the selling of goods and services to those consumers who leave far
away from fixed retail home and goods can be delivered to home, offices and any other places.

Direct Marketing – It refers to as using print or broadcast advertising to contact consumers who
in turn buys goods at online stores.

Vending Machine – it refers to the selling of goods through no personal contact between seller
and buyer. The large majority of vending sales comes from 4C`s cold drink, coffee, candy and
cigarette.

World wide web- It refers to purchasing of the goods by the consumer through electronic
channels. It is convenient because the consumer can place order anytime as it is opened for 24
hours.
Teleshopping – In this form of retailing the product is advertised on television related to
feature, price and guarantee of the product and consumer place the order via phone call and
number is mentioned on the television screen.

As the direct selling market has witnessed at growth 21% over five years in India. It is expected
to grow more with the growth in the retail business.

Consumer Trust in the Online Retail Context: Exploring the Antecedents

and Consequences

Chen, Jun & Dibb, Sally. (2010). Consumer Trust in the Online Retail Context: Exploring the
Antecedents and Consequences. Psychology and Marketing. 27. 10.1002/mar.20334.

The research shows the significance of Web site quality in encouraging customer trust and
shaping positive attitude towards online retailing. The outcomes show that respondents'
convictions about Web site quality and online retailers influence their perspectives toward the
site which also influence their methodology goals.
The outcomes show that Web site quality highlights, including convenience, security and
privacy, and quality, essentially and decidedly impact trust. This investigation shows that
having a simple and efficient user interface, online retailing is the way to internet business
achievement. A well designed Web site with high convenience adds to customer trust in the e-
retailing and to positive perspectives toward the retailer. It firmly endorse retailers putting
resources into Web based business moves up to improve convenience and traffic. In particular,
a Web site that has a significant level of convenience must be simple for customers to buy.
Giving security and privacy measures can relieve customer's stresses over the pervasiveness of
these issues on the Web. Security and protection confirmations may appear as a protection
proclamation, a clarification of the utilization of a safe exchange system. Besides, the research
shows that trust is expanded by the availability of high-quality information the Web site.
 Development of Non-store Retail in Globalization era
Tien Minh, DINH. (2016). Development of Non-Store Retail in the Globalization Era.

The development of non-store retailing is seen as an evolution in retail sector, which change
the customer shopping behavior, especially, in the globalization era. In order to have an
overview about non-store retailing, this study aims to investigate how and why the retail sector
has internationalized its operations over the past two decades and the characteristics of that
process, highlight current and potential future trends in the internationalization of the sector,
the factors which impact on the development of non-store retailing in globalization scale.
According to General Statistics Office of Vietnam, a large majority about 80% of retail
transactions is made in stores. However, a growing volume of sales is taking place away from
stores. It is estimated that non-store sales account for almost 20% of total retail trade. Non-
store sales are now growing at a higher rate than sales in retail stores.
Development of non-store retailing by type: The total sale of non-store retailing is significantly
increased from US $524.8 billion in 2010 to US $904.9 billion in 2015.
Development of non-store retailing by scale and by proportion: Retails sales worldwide-
including both in-store and non-store reached US $22.492 trillion in 2014. The global retail
market will see steady growth over the next few years, and in 2018, worldwide retail sales will
increase 5.5% to reach $28.300 trillion.
Development of non-store retail in globalization: One of the manifestations of globalization is
the free trade and the development of multinational companies and Amazon is an example.
Amazon’s Global Selling program provides access to the top international retail markets in
North America, Europe, and Asia: North America – Canada & U.S, Europe – U.K., Germany,
France, Italy, & Spain, Asia – Japan, China, & India. Market reach is not limited to these ten
countries — Amazon customers come from 178 countries around the world. By expanding
globally with Amazon’s international marketplace, the number of potential customers increases
from 100 million in the U.S. to 250 million worldwide. With operations in ten international
marketplaces, the e-commerce giant connects retailers to millions of customers worldwide.
Numbers also point to its strong performance as an international marketplace. In 2014,
international net sales totaled US $33.5 billion, accounting for nearly 40% of total sales.