Resources, Competencies and Distinctive Capabilities
Resources The activities and processes of the organization utilize certain assets. These assets are called resources. These resources can be created within the organization. They form the internal resources. Such generated resources are organization-specific. Otherwise they could be obtained externally from the suppliers available in the resource markets. They form the external resources. The externally […]
B2B Marketing Vs. B2C Marketing in the E-Commerce Industry
E-commerce has taken many companies across the world by storm. Giants like Alibaba.com and Amazon have been created in the past few years thanks to the sudden boom in the e-commerce industry. Alibaba and Amazon are both similar in the sense that they are websites where people buy and sell products, i.e. e-commerce portals. However, […]
Brand Management: Brand Attributes
Brand Attributes portray a company’s brand characteristics. They signify the basic nature of brand. Brand attributes are a bundle of features that highlight the physical and personality aspects of the brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in creating brand identity. A strong brand must have following attributes: Relevancy- A […]
Components of a Strategy Statement
The strategy statement of a firm sets the firm’s long-term strategic direction and broad policy directions. It gives the firm a clear sense of direction and a blueprint for the firm’s activities for the upcoming years. The main constituents of a strategic statement are as follows: Strategic Intent An organization’s strategic intent is the purpose […]
Methods of Measuring Customer Satisfaction
Managing customers’ satisfaction efficiently is one the biggest challenge an organization face. The tools or methods to measure customer satisfaction needs to be defined sophisticatedly to fulfill the desired norms. There are following methods to measure customer satisfaction: Direct Methods: Directly contacting customers and getting their valuable feedback is very important. Following are some of […]
Retailing refers to the concept of selling merchandise in small quantities to the consumers for their end use. According to retailing, the individual can walk up to any nearby retail store and purchase products as per his need and pocket in small units for his own consumption.
The display of merchandise at the store plays an important role in attracting the customers into the store. The display of the products at the retail store goes a long way in influencing the buying behaviour of the consumers. The presentation of the products is essential to create that first impression in the minds of the consumers.
Cross merchandising refers to the display of opposite and unrelated products together to earn additional revenues for the store. Products from different categories are kept together at one place for the customers to find a relation among them and pick up all.
According to cross merchandising:
Examples of Cross Merchandising
Jenny went to a nearby retail store to purchase a shirt for herself. She picked up a nice blue formal shirt displayed on the mannequin. The retailer was smart enough to add matching trouser, scarf and a handbag to the mannequin (Cross Merchandising). Not only did Jenny purchase the shirt but also the trouser as well as the office bag as she felt the products would complement her shirt.
The customer at the first instance can’t really decide what all he needs apart from the products he has already purchased. Through cross merchandising, the retailer smartly tries his level best to convince the customers to buy additional products apart from his existing list.
Mike went to a nearby departmental store to purchase cigarettes. He spotted chewing gums displayed along with the cigarettes. He immediately decided to purchase the chewing gums along with his cigarettes which he might need after smoking. Thus cross merchandising (display of cigarettes along with chewing gum) made Mike realize the connection between the products and eventually pick both of them.
Displaying neck ties with Laptops would make no sense and fail to excite the customers. The customer would purchase either of the two (Either the Laptop or the neck tie) depending on his need but would never purchase both. However if laptop bags are kept with laptops, there are chances that the customer might pick up both the products.
Your email address will not be published. Required fields are marked *
Challenges to the Retail Sector (As per Michael Porter s Five Forces Model)
February 12, 2025
