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SOUTH METROPOLITAN TAFE
Whether or Not It Is
Profitable for Offline Fashion
Business Retailers to Spread
Their Market Online
HBU102 Communication Report Assignment
Ni Putu Dea Pradnya - 131603522
4/26/2016
Thisdocumentisa report froma surveyconductedwithsurveymonkey.com,determiningif itisprofitable for
non-onlinefashionbusinessretailertospreadtheirmarketonline.
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Table of Contents
Executive Summary………………………………………………………………………3-4
1 Introduction………………………………………………………………………………5-6
2 Methodology…………………………………………………………………………….6-8
2.1 Research………………………………………………………………………….6
2.2 Survey Questions…………………………………………………………….7-8
3 Results and Case Study……………………………………………………………….8-12
3.1 Samples’ age………………………………………………………………………………8
3.2 Averageexpenditure for clothing in a month……………………………..9
3.3 Consumer’s preferenceof in store vs. online………………………………9-10
3.4 Preferenceoptions…………………………………………………………………….10-11
3.5 Consumers’existingfavoritebrandavailablenessof online features/services……….11
3.6 Consumers’ opinion about whether unpopular local brand should spread their market to
online to enter new competition with online business………………………………………………………….11
3.7 Consumers’ buying behavior……………………………………………………….11
3.8 Consumers’ opinion regarding retailer’s online feature……………....12
3.9 Concerns regarding online store………………………………………………....12
3.10 Solution to trust issues…………………………………………………………….....12
4 Conclusion and Suggestions………………………………………………………...12-13
5 References…………………………………………………………………………………...14
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Executive Summary
Everydailyactivitynowadaysalmostcannotbe separatedfrominternet,thusevery business acknowledges this
and notonlyusinginternetaspart of theirbusinessprocessbuttooconnectwiththeirconsumer.Usingthe
termsbricks-and-mortarwhichisthe traditionalphysicalstore withnoonline service andclicks-and-mortarwith
bothphysical store andonline store businessstrategy,thisreportfocusaboutbricks-and-mortarfashionretailer
especiallythose unpopularlocal brandsthatthreatentobe replacedbyonline store toanalyze shouldthey
spreadtheirmarketto online andshortlytransformtheirexistingbricks-and-mortarbusinessstrategytoclicks-
and-mortarone. What itis meanby‘spreadtheirmarketto online’isbasicallyhavingonlinemarketingor
advertisinginthe firstplace,furthermore buildawebsite withonline catalogue,onlinepurchase (local or
international) andnecessarilymake acooperationwith3rd
partyor othercompanyandto simplyhavingamobile
application,thusthe scope of thisreportare onlydiscussingthe effectivenessof clicksandmortarstrategyin
consumer’spointof view,linkedthemwiththe worthinessof changingthe businessprocessandfinallygatherall
the ideaingeneral.We receivedthe necessary informationthroughanonline surveyasadirectapproach to the
consumerthatlikelyusedthe internetinadailybasis,itwasconductedfrom38 samplesina particularrange of
age andfinancial situation,therefore thereare lotsof limitationsonthe researchsuchas too general opinionof
the consumersbutnot concerninghowthe businessprocesswill change andaffectthe company,the quantity,
age range and occupationof the sampleslimitedintoaparticulargroup.
A primaryresearchwasconductedinMarch 2016 in one weekperiod.It isasimple formof online surveythrough
a website SurveyMonkeyentitled‘WHETHEROR NOT IT IS PROFITABLEFOROFFLINEFASHION BUSINESS
RETAILERS TO EXPANDTHEIR MARKET TO ONLINE”andset as the report’sfundamental question,with10
questionsof multiple choiceandshortopinionanswers.The linkof the surveywebsiteswasspreadthroughe -
mail and social mediatoapproachthe samples,itisonly requiredfor20samples,anditwas occurredthat it
receivedover38 responsesbutnotall the samplesanswersall the questioncompletely.Thispaperalsoinclude
some data fromsecondaryresearchfromsome journalsandarticlesaboutthe recentsituationinfashion
businessretailerscompetition,the samplesof some businessstrategiesusedbyexistingfirms,discussionabout
whichisbetterand etc.There are some specificmathematical andfinancial dataregardingthe operationof
online salesandthe effectivenessof the decisions,thisreportonlytookthe general conclusionstosupportour
findingsandasa setof the background’sissuesof thisreports.
We assumedandconcludedthe resultsof the surveybycase studysupportedbyexistingarticlesasabased
theory,itiseasilyconcludedbecausethere were pointsof opinionsfromthe samplesthatanswerthe
fundamental questionsof thisreports.
The discussionof everysurveyquestionincludessome graphicortable tosupportinterpretingthe multiple
choice answers,andseveral paragraphsof summaryforthe short opinionanswers.The findingswere consumers
constantlyspend$10-$50 for clothing,withpreference70% buyingin-store and30% online,the reasonsare vary,
despite individual’spreference onconvenience orenvironmentbecausewhethertheyhave time ornottogo to
the store,mostlybecause theyare able totouch andtry the productsdirectlybefore theyactuallydothe
transactionwhichtheycannotdo inonline store,butthe rest30% may comingfrom the same consumer,because
averagelytheypreferbothways.Basedontheiropinions,theyall agree thatunpopularlocal brandshouldhave
online feature orservice importantlytoreachnew customer,astheyare not popular.Also,toreduce time
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because itissimplerif the retailerhasonline catalogue thencustomerwill have the optiontobuyonline aswell
as goinginstore.Furthermore,onlinemarketingonsocial mediawhichhasdirectlinktothe website itself isfar
the most effective way toattract or discovermore customers,asthere are some people thatmaybe not exposed
by physical advertisement,whichmayleadtopossible internationalmarket.Soithelpsthe boththe consumer
and the retaileritselftoreacheach other,alignwithseveral consumers’behaviorrevealedthattheyoften
compare the price from online andoffline ordoingwindow-shoppinginstore asshowroom, andit suggestthatit
ismore effective forthe retailertohave theirownonline service.The factthatbiggerpart of consumers’existing
favorite brandhave online featuresorservice reallyhelpsthemastheyhave basiconline featureorservice that
retaileratleasthad isa mobile app;online catalogue real timeornotwhichletthe customerpurchase online,
may showthe store locationor the nearestone available (companywithmultiple branch),unpopularlocal brand
ishighlysuggestedtohave thisaspeople maynotrecognize theirproductsorjustheardfromfriendswhichmake
it highlydoubtedfornewcustomer,theymaynotknow the store locationorsimplyhave notime tovisitthe
store.
So itis highlysuggestedthatitisprofitable foroffline especiallyunpopularlocal brandretailerbuildonlineservice
to reach online markettodiscovermore customer andmake iteasierforthe existingcustomer.Thustomake it
effective,retaileralsoneedtoaddressthe problemandsolutionregardingtoprogressonlinemarket.The focus
of thisstudyisclothingproducts,thusithas to match withone’sbody,withonline-purchasing,customerneedto
be sure of themselvesandpredictbeforetheyactuallybuyit;how oftenthe productreceivedisextremelydiffer
fromthe picture orthe descriptionsoffered;wrongsize,wrongcolor,badquality,oranythinglowerthan
expectation.Thenonthe otherhandthere isadditional costforsendingthe product.Addressinghowconsumers’
make sure of themselvestobuyonline; theyreadreviews,commentsandtestimoniesfromthe previous
consumer,some consumermayaskaboutreturn policyincase of wrongsize,coloretc.The solutionsthatmay
solve ordecrease the problemwere;the retailershouldprovidegoodproductandservicesinthe firstplace,the
retaileralsoshouldgatherall positive reviewsfrompreviouscustomer,providingaproperreturnpolicyandmake
the website andadvertisementasattractive butstill simpleaspossibleasinternet-userare visual-oriented.
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1 Introduction
Retailerbusinessnowadaysuse click-and-mortarbusinessmodel strategywhichthe businessrunthe physical
store alongwith internetchannel since the populationof internet-userhasincrease rapidlyover decades,
therefore itattractsmanyfirmsto do e-commerce,thusthe massincrease of businessretailerbothphysicaland
online marketordual-channelare drivenbyconsumer’sfavorof convenience andchanginglifestyle of internet-
usingas people isbackupby knowledge of technology.Thisbusinessmodel includesthe traditionaloperationof
physical store retail andonline featuresfrom websitestomobile applicationthatenable the consumerstoview
the productsand or buy itonline directly,show the neareststore locationandetc.Fromdepartmentstore to
specialtystore,retailershave expandtheirexistingtraditionalstore tointernetchannel,butthere are still lotsof
traditional retailerorsocalled bricks-and-mortarbusinessmodel strategy especiallyusedby local brand stores
whichare alreadyina severe situation tobe replacedbyonline store.Inafashionbusinessretailer,big
international companyasZARA,H&Msucceededthe practicesof clicks-and-mortarbusiness strategy;itisan
inspirationforlocal brandstore toadopt such planto notonlyinternet-marketingbuttothe extentof e-
commerce.Indeeditwill require abigchange andbudgetto transformthe businessprocessandmaynot
necessarilyeffectiveforthe bricks-and-mortarcompanytodoso butthere are manycompaniesthatform
alliance withexistinge-retailerorsocalled pureplay company,for example Toys RUs withAmazon.comtosell
toysonline.
Thisbusinessstrategy(click-and-mortar) practicesandresultsseemtosuggestanybricks-and-mortaror
traditional retailersto change theirbusinessprocesstoaddinternetchannel,orshortlytransformintoclicksand
mortar retailers.Concerningthe poorsituationof local brandmarketanditsmarketing,the purpose of reportwill
discussandanalyze the reasonandbenefitof clicks-and-mortarbusinessstrategyandaddressthese following
questions:
1. Shouldtraditional retailersexpandtheirmarkettoonline market,tothe extentof changingtheirbusiness
process?
2. Is itprofitable forthemoronlybenefitthe customer?
Thispaperonlyfocusto the fashionbusinessretailerthatthe productswere generally clothinggoods,regarding
the problemshouldorshouldnotlocal brandstore adopt the changes.What itis meanby‘spreadtheirmarketto
online’isbasicallyhavingonline marketingoradvertisinginthe firstplace,furthermore buildawebsitewith
online catalogue,onlinepurchase (local orinternational) andnecessarilymake acooperationwith3rd
party or
othercompanyand to simplyhavingamobile application,thusthe scope of thisreportare only discussingthe
effectivenessof clicksandmortarstrategyinconsumer’spointof view,linkedthemwiththe worthinessof
changingthe businessprocessandfinallygatherall the ideaingeneral.We receivedthe necessary information
throughan online survey asa directapproachto the consumerthat likelyusedthe internetinadailybasis,itwas
conducted from38 samplesina particularrange of age and financial situation,therefore there are lotsof
limitationsonthe researchsuchas too general opinionof the consumersbutnotconcerninghow the business
processwill change andaffectthe company,the quantity,age range andoccupationof the sampleslimitedintoa
particulargroup.
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Thisreportis organize asfollows; Inthe sectionafterthiswill showsthe reviewof the methodologyof the
research includingthe survey questions,thirdly thisreportwill discussandanalyze everyquestionandanswerin
the survey withbrief explanationandsome graphsof the data, and finally the conclusion, andsuggestionbythe
author regardingthe findingsof the research. The necessityof thisreportandsurveywere tohelpbricks-and-
mortar especiallybutnotlimitedtolocal brandfashionretailerstodecide waystoimprove theirbusinesstoflow
withthe trendgloballywithconcrete opinionsfromthe consumer, withitsconclusionsandsome suggestions,
fromvariousreferencesandexamples.
To explainthe minimumquantityandqualityof the samplesandsurveyquestions;thisreportisconductedasan
assignmenttofinalizeatrial fora survey,therefore there are proceduresthathave tobe fulfill andina simplest
waypossible toconductthe surveyandreport the results.
2 Methodology
2.1 Research
In orderto receive areasonable andgenuinedatadirectlyfromthe consumer,a primaryresearchwasconducted
inMarch 2016 in one weekperiod.It isa simple formof online surveythroughawebsite SurveyMonkeyentitled
‘WHETHER OR NOTIT ISPROFITABLEFOR OFFLINEFASHION BUSINESSRETAILERS TO EXPANDTHEIR MARKET TO
ONLINE”and setas the report’sfundamental question, with10questions of multiple choice andshortopinion
answers.The linkof the surveywebsiteswasspreadthroughe-mailandsocial mediatoapproachthe samples,it
isonlyrequiredfor20 samples,but itwasoccurred thatit receivedover38 responses.The targetsample was
teenagerage between 17-25 yearsold,the reasonwere thisparticulargroupof age are the one who use internet
on a dailybasis,concernmuchaboutfashionandstronglydrivenbythe changinglifestyle andtrends,andmore
importantlyare the mostlocal brand or fashionretailers’ targetmarket,intheorythisgroupismostlystill
supportedfinanciallybytheirparentssotheirbuyingpatternisstable andnotaffectedbyanyeconomic
problems. Andasthisteengenerationare calledYandZ, social mediahassuch a significanteffectfortheirlife,
theywantto buy thingstoappeal more,theywantto share the experienceof whathappen,orwhatand where
theybuy a product.So unpopularorunexposedbrandorretail place wouldbe socalledanti-mainstreamwould
attract themmore,thus the companyshouldreachthese customerthe online-way.
Thispaperalso include some datafromsecondaryresearchfromsome journalsandarticlesaboutthe recent
situationinfashionbusinessretailerscompetition, the samplesof some businessstrategiesused byexistingfirms,
discussionaboutwhichisbetterandetc. There are some specificmathematical andfinancial dataregardingthe
operationof online salesandthe effectivenessof the decisions,thisreportonlytook the general conclusionsto
supportour findingsandasa set of the background’sissuesof thisreports.
The author interpretedandconcludedthe results of the surveybycase studysupportedbyexistingarticlesasa
basedtheory,itiseasilyconcludedbecausethere werepointsof opinionsfromthe samplesthatanswerthe
fundamental questionsof thisreports.
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2.2 Survey Questions
There are 10 questionsinthe surveyincludingmultiplechoice andshortanswers. The reasonbehindchoice of
the questionswasbasedonthe author’sopinion,how toaskas simple andgeneral aspossible butalsocould
addressthe questionrequired.
1. What is your age? itis to ensure the targetsample
2. How much do you usuallyspentfor clothing in a month? (inaud)
- Lessthan $10
- $10-$50
- $50-$70
- $70-$100
- Above $100
It isto determine howmuchaveragelytheyspentmoneyforclothinginamonthto calculate if they
are potential targetconsumer
3. About what percentage you preferbuying in store or online?
- 100% in store
- 50:50
- 100% online
- 30% instore,70% online
- 70% instore,30% online
It isto determine howthe consumers’preferenceof theirbuyingpatterns
4. What is your reason behindthischoice? (relatedto questionno.3)
- Price,comparisonbetweenoffline andonline
- Time limits,the time consumeractuallyreceive the products
- Convenience,the preferwayof doingthe buyingprocess
- Environment,the surroundingsandsituationtheypreferwhilebuying
- Additional costs,tax orshippingcosts(foronline)
- Nothavingto queue,benefitof online
- Able totouch and try the products,benefitof instore
It isto determine theirreasonof buyingprocess’ preference inthe questionbefore
5. Do your favorite clothingbrands have online service to purchase the products?
6. Wouldyou agree that some unpopular local brand retailersshouldspread their businessonline to
compete with online competitor?Why?
Thisis the fundamental questiontoshow the consumer’spointof view regardingthe issues
7. Have you done these?
- Go to retailers asa showroombefore purchasingproductsonline
- Go to retailersandcompare the price withonline store
To determine consumers’behaviorandthe benefitof havingowned internetchannel
8. Do you agree at leastretailershave a mobile app? (To purchase, show the nearest shop,etc.)
9. What are your biggestconcerns about buying products online?
It isto showthe problemsaboute-commerce before actuallydoingsoaspreventact to avoidproblems.
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10. How do you make sure of yourselfbuyingproducts online?
It isthe consumers’behaviortotrustonline productswithitssolutionof theirconcerns.
The following section will discussed furthermore about the questions’ choice and its answers.
3 Results or Findings
This section will analyze each of the survey questions to describe the idea of how it addresses
the fundamental questions. Mind that not all the samples (38 in total) answer all the questions
so the quantity for each question may differ.
3.1 Samples’ age
The response receivedachievedthe targetpurpose of thisreport,mostlyteenagerdespiteof the gender,
age between17to 20 yearsold.Asstatedbefore,the reasonsbehindchoosingthisparticularage group
were theyare the one who use internetona dailybasis,concernmuchaboutfashionandstronglydriven
by the changinglifestyle andtrends,andmore importantlyare the mostlocal brandor fashionretailers’
target market,intheorythisgroupismostlystill supportedfinanciallybytheirparentssotheirbuying
patternisstable and notaffectedbyanyeconomicproblems.
10
27
1
samples'age
17 or younger
18-20
21-29
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3.2 Averageexpenditure for clothing in a month
The chart showsthataveragelymostof the samples spent$10-$50 for clothingina month, thusit issignificant
enoughtobenefitcompanyasmostlyteenagerspenttheirmoneytoappeal more onsocial media,asa
competition,withintrendsthatalwayschanging,theywill stillalwaysbuynew thingstonotlookasordinary.
3.3 Consumer’s preferenceof in store vs. online
7
28
3
less than $10 $10-$50 $50-$70
average expenditure
average expenditure
0
2
4
6
8
10
12
14
16
18
20
100% in store
(A)
50-50 (B) 100%online
(C )
70%online
30% instore
(D)
30% online
70% in store
(E)
samples
online
in store
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Thischart showsthe percentage of consumers’preferredplace topurchase clothingproducts. Mostlyconsumers’
still preferbuyinginstore butalsothe online-way,there isnoone fromthe sampleschoose 100% online,and
mainlychoose 70% in store and 30% online,itshowsthat70% of the samplesactuallypreferbothwaysto
purchase products.
Related to this chart of preference, the next chart will show the reason of consumers’ choice
3.4 Preferenceoptions
Option Samples Preference’s
category
(from chart
3.3)
Price 22 A,B,D,E
Time limit 12 A,B,E
Convenience 14 A,B,E
Environment 8 A,B,E
Additional cost 4 A
Not having to queue 4 B,D
Able to touch and try the product 26 A,B,D,E
Relatedwiththe dataabove we will lookagainatthe previouschart (3.3) of percentage whetherthey
preferbuyinginstore andor online,thenlinkthemtogether,tosee whatisthe reasonbehindtheir
preference andchoice of optionsavailable,they could choosemorethan oneoption above.
The previouschart’scategoriesalreadylabeledbyalphabet,the lastcolumnshowswhichcategories
of preferencechoose the particularreason/optioninthe firstcolumn
Shortlyas example;categoryA whichispeople thatprefer100% buyinginstore because the price is
worthit as theyable to touchand try the product withnoadditional costinonline shippingandetc.,
we acknowledge the meaningof the optionsasfollows;
- Price,some people prefereitherinstore or offlineorbothso theycan compare
- Time limits,the time customeractuallyreceive the products,mostly instore-preferred
- Convenience,30%of the samplesfeelmore easyandconvenience tojustsitandorderfrom
everywhere online and70%of themfeel it'seasiertogobuy instore and receive the product
immediately
- Environment, similarasconvenience
- Additional cost, consumeroftenly avoidonlineshippingcost
- Not having to queue, foronline-buyer
- Able to touch and try the products, thisisthe mostlogical consumerbehaviorinpurchasingclothing
products,and one of the biggestconcernto avoidonline store aspossible
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Withthisinformation,itshowsthe patternof consumers’basicbuyingbehaviorthatwouldaffect
where shouldcompanyimprovetheironline service withthe factthat mostlyconsumers’still prefer
buyinginstore but withbigportionof opportunitytobuyonline astheycouldn’thave the time togo
to the store all the time.
3.5 Consumers’ existing favoritebrand availableness of online features/services
It showsthat howin the competitiveenvironment;mostlythe consumers’existingfavoritebrands
alreadyhave theirownonline featuresorservices,thuswhetheritispopularor not,havingonline
features/serviceshelpalotto be well-knownandreachthe customer.
3.6 Consumers’ opinion aboutwhether unpopular local brand should spread their
market to online to enter new competition with online business
With38 responsesreceived,averagelycustomers’ opinionsregardingthisquestionare aligned.Theyall agree
that unpopularlocal brandshouldhave onlinefeature orservice importantlytoreachnew customer,asthey
are notpopular.Also,toreduce time because itissimplerif the retailerhasonline cataloguethencustomer
will have the optiontobuyonline aswell asgoinginstore.Furthermore,online marketingonsocial media
whichhas directlinktothe website itself isfarthe mosteffectivewaytoattract or discovermore customers,
as there are some people thatmaybe notexposedbyphysical advertisement,whichmayleadtopossible
international market.
3.7 Consumers’ buying behavior
The 7th
questionasksif the consumers’have done these 2things (canchoose both):
1. Go to retailersasa showroom before purchasingproductsonline –13 people
2. Go to retailersandcompare the price withonline store - 15 people
It showsthat mainlyall the samplesdone thosethings,how customers’oftencompare onlinevs.offline,but
insteadof usingretailersjustasa showroomtobuyfrom anotheronline store,itisbestforthe retaileritself has
theirownonline catalogue sothe companycanreach bothways to match withcustomers’demand.
yes, 32
no, 6
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3.8 Consumers’ opinion regarding retailer’s online feature
The 8th
questionsaskswhetherthe consumeragree if atleastretailerhasa mobile app;all the
answersare yes,the basiconline feature orservice thatretaileratleasthad is a mobile app;online
catalogue real time ornot whichletthe customerpurchase online, mayshow the store locationor
the nearestone available (companywithmultiple branch),unpopularlocal brandishighlysuggested
to have thisas people maynotrecognize theirproductsorjustheardfromfriends whichmake it
highlydoubtedfornewcustomer,theymaynotknow the store locationorsimplyhave notime to
visitthe store.
3.9 Concerns regarding online store
Basedon previouschartof preference option(3.4),becauseitisclothing,it’sall abouthowthe
productmatch and comfortwithone’sbody,mostlythe reasonthere isnobodychoose tobuy
product100% online isbecause theyare notable totouchand try the product. Seeingonline
competitionalone,orsocalledpure playbusinessstrategy,there are alreadyamassquantityof
online store fromhand-made,fake brandstoreal luxurybrands, soitis hard to trustwhetherone is
official ortrusted.But the biggestconcernare how oftenthe product received isextremelydiffer
fromthe picture orthe descriptionsoffered;wrongsize,wrong color,badquality,oranythinglower
than expectation.Thenonthe otherhandthere isadditional costforsendingthe product.Soretailer
needtounderstandthese problemsand addresssome plans topreventthese fromhappeningin
orderto gain consumers’trust.
3.10 Solution to trustissues
The last questionasksevenwiththe problemsoccurringwhichleadtotrustissuesanddoubt
regardingonline store;howconsumers’make sure of themselvesstill decide tobuyonline.The
answerswere varying;mostlynew customerwill firstlysee the reviews andcomments fromprevious
customerand theirtestimonialsaboutthe products, evenhow companydesigntheirwebincluding
theironline advertisementare critical thingsof how topersuade customers;lame,oldortoo simple
or amateurdesignwouldmake aperceptionthathow unattractive the websiteandsodoesthe
product. Furthermore,some consumermayaskaboutreturnpolicyincase of wrongsize,coloretc.
So relatedtothe previouscustomers’concerns aboutonline stores,theyalreadygiveideaof howto
preventitfromhappening,despitethe retailershouldprovide goodproductandservicesinthe first
place,the retaileralsoshouldgatherall positive reviewsfrompreviouscustomer,providingaproper
returnpolicyandmake the website andadvertisementasattractive butstill simple aspossible.
4 Conclusion and Suggestion
The concern that thisreportissuedwere whetherornotoffline retailerorso calledbricks-and-mortarCompany
to spreadtheirmarket online tothe extentof changingtheirexistingoffline businessprocesstowhichbasically
havingonline marketingoradvertisinginthe firstplace,furthermore buildawebsite withonlinecatalogue,
online purchase (local orinternational) andnecessarilymake acooperationwith3rd
partyor othercompanyand
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to simplyhavingamobile application.Withthe targetsamplesof teenagerandadultteenager,whichthe
populationthatbackedupby the knowledgeof internet-usage foreverydaylife andimportantlytheirsocial life,
an online surveywith10questionsconsistof multiplechoicesandshortopinionanswershadconductedand
received38responses. The resultsinpreviouschaptershowsthatmostlyconsumersconstantlyspend$10-$50
for clothing,withpreference 70%buyingin-store and30% online,the reasonsare vary,despite individual’s
preference onconvenience orenvironmentbecausewhethertheyhave timeornotto go to the store,mostly
because theyare able to touchand try the productsdirectly before theyactuallydothe transactionwhichthey
cannot doin online store,butthe rest30% may comingfromthe same consumer,because averagelytheyprefer
bothways.Basedon theiropinions,theyall agree thatunpopularlocal brandshouldhave online featureor
service importantlytoreachnewcustomer,astheyare not popular.Also,toreduce time because itissimplerif
the retailerhasonline catalogue thencustomerwill have the optiontobuyonline aswell asgoinginstore.
Furthermore,online marketingonsocial mediawhichhasdirectlinktothe websiteitself isfarthe mosteffective
wayto attract or discovermore customers,asthere are some people thatmaybe not exposedbyphysical
advertisement,whichmayleadtopossible international market.Soithelpsthe boththe consumerandthe
retaileritselftoreacheach other,alignwithseveral consumers’behaviorrevealedthattheyoftencompare the
price fromonline andofflineordoingwindow-shoppinginstore asshowroom, anditsuggestthat itis more
effectiveforthe retailertohave theirownonlineservice. The factthatbiggerpart of consumers’existingfavorite
brand have online featuresorservice reallyhelpsthemastheyhave basiconline featureorservice thatretailerat
leasthadis a mobile app;online cataloguereal time ornotwhichletthe customerpurchase online,mayshow
the store locationor the nearestone available (companywithmultiple branch),unpopularlocal brandishighly
suggestedtohave thisas people maynotrecognize theirproductsorjustheardfromfriendswhichmake ithighly
doubtedfornewcustomer,theymaynotknow the store locationorsimplyhave notime tovisitthe store.
So itis highlysuggestedthat itisprofitable foroffline especiallyunpopularlocal brandretailerbuildonlineservice
to reach online markettodiscovermore customerandmake iteasierforthe existingcustomer.Thustomake it
effective,retaileralsoneedtoaddressthe problemandsolutionregardingtoprogressonline market.The focus
of thisstudyisclothingproducts,thusithas to match withone’sbody,withonline-purchasing,customerneedto
be sure of themselvesandpredictbeforetheyactuallybuyit;how oftenthe productreceivedisextremelydiffer
fromthe picture orthe descriptionsoffered;wrongsize,wrongcolor,badquality,oranythinglowerthan
expectation.Thenonthe otherhandthere isadditional costforsendingthe product.Addressinghowconsumers’
make sure of themselvestobuyonline; they readreviews,commentsandtestimoniesfromthe previous
consumer,some consumermayaskaboutreturn policyincase of wrongsize,coloretc.The solutionsthatmay
solve ordecrease the problemwere;the retailershouldprovidegoodproductandservices inthe firstplace,the
retaileralsoshouldgatherall positive reviewsfrompreviouscustomer,providingaproperreturnpolicyandmake
the website andadvertisementasattractive butstill simpleaspossibleasinternet-userare visual-oriented.
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5 References
Bernstein,F.,Song,J.,&Zheng,X.(2008). “Bricks-and-mortar”vs.“clicks-and-mortar”:anequilibriumanalysis.
EuropeamJournalof OperationalResearch,187(3),671-690. Doi: 10.1016/j.ejor.2006.04.047
Marketest.co.uk.(2016). Fashion shopping questionnaire.Retrievedfrom
http://www.marketest.co.uk/market-research-questionnaire/99/clothing-accessories-fashion-shopping
Online vsOffline –doretailersneedtouptheirgame to avoidcontinual lossestoonlinerivals?(n.d).Retrieved
fromhttps://www.surveymonkey.com/r/?sm=Ks%2FefPV5gmgy9Ob7gOEN3w%3D%3D
Schlossberg,M.(2016). One sentence revealshow teengenerationz iskillinggap,abercrombie,andj.crew.
Retrievedfrom http://www.businessinsider.com.au/generation-z-is-killing-gap-abercrombie-and-j-crew-
2016-2
Steinfield,C.,Adelaar,T.,&Liu,F. (2005). Clickandmortar strategiesviewedfromthe web:acontentanalysis
of featuresillustratingintegrationbetweenretailers’online andoffline presence. ElectronicMarkets,
15(3), 1-30. Retrievedfrom https://msu.edu/~steinfie/EM_2005.pdf

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report comm on work (Repaired)

  • 1. SOUTH METROPOLITAN TAFE Whether or Not It Is Profitable for Offline Fashion Business Retailers to Spread Their Market Online HBU102 Communication Report Assignment Ni Putu Dea Pradnya - 131603522 4/26/2016 Thisdocumentisa report froma surveyconductedwithsurveymonkey.com,determiningif itisprofitable for non-onlinefashionbusinessretailertospreadtheirmarketonline.
  • 2. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 2 Table of Contents Executive Summary………………………………………………………………………3-4 1 Introduction………………………………………………………………………………5-6 2 Methodology…………………………………………………………………………….6-8 2.1 Research………………………………………………………………………….6 2.2 Survey Questions…………………………………………………………….7-8 3 Results and Case Study……………………………………………………………….8-12 3.1 Samples’ age………………………………………………………………………………8 3.2 Averageexpenditure for clothing in a month……………………………..9 3.3 Consumer’s preferenceof in store vs. online………………………………9-10 3.4 Preferenceoptions…………………………………………………………………….10-11 3.5 Consumers’existingfavoritebrandavailablenessof online features/services……….11 3.6 Consumers’ opinion about whether unpopular local brand should spread their market to online to enter new competition with online business………………………………………………………….11 3.7 Consumers’ buying behavior……………………………………………………….11 3.8 Consumers’ opinion regarding retailer’s online feature……………....12 3.9 Concerns regarding online store………………………………………………....12 3.10 Solution to trust issues…………………………………………………………….....12 4 Conclusion and Suggestions………………………………………………………...12-13 5 References…………………………………………………………………………………...14
  • 3. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 3 Executive Summary Everydailyactivitynowadaysalmostcannotbe separatedfrominternet,thusevery business acknowledges this and notonlyusinginternetaspart of theirbusinessprocessbuttooconnectwiththeirconsumer.Usingthe termsbricks-and-mortarwhichisthe traditionalphysicalstore withnoonline service andclicks-and-mortarwith bothphysical store andonline store businessstrategy,thisreportfocusaboutbricks-and-mortarfashionretailer especiallythose unpopularlocal brandsthatthreatentobe replacedbyonline store toanalyze shouldthey spreadtheirmarketto online andshortlytransformtheirexistingbricks-and-mortarbusinessstrategytoclicks- and-mortarone. What itis meanby‘spreadtheirmarketto online’isbasicallyhavingonlinemarketingor advertisinginthe firstplace,furthermore buildawebsite withonline catalogue,onlinepurchase (local or international) andnecessarilymake acooperationwith3rd partyor othercompanyandto simplyhavingamobile application,thusthe scope of thisreportare onlydiscussingthe effectivenessof clicksandmortarstrategyin consumer’spointof view,linkedthemwiththe worthinessof changingthe businessprocessandfinallygatherall the ideaingeneral.We receivedthe necessary informationthroughanonline surveyasadirectapproach to the consumerthatlikelyusedthe internetinadailybasis,itwasconductedfrom38 samplesina particularrange of age andfinancial situation,therefore thereare lotsof limitationsonthe researchsuchas too general opinionof the consumersbutnot concerninghowthe businessprocesswill change andaffectthe company,the quantity, age range and occupationof the sampleslimitedintoaparticulargroup. A primaryresearchwasconductedinMarch 2016 in one weekperiod.It isasimple formof online surveythrough a website SurveyMonkeyentitled‘WHETHEROR NOT IT IS PROFITABLEFOROFFLINEFASHION BUSINESS RETAILERS TO EXPANDTHEIR MARKET TO ONLINE”andset as the report’sfundamental question,with10 questionsof multiple choiceandshortopinionanswers.The linkof the surveywebsiteswasspreadthroughe - mail and social mediatoapproachthe samples,itisonly requiredfor20samples,anditwas occurredthat it receivedover38 responsesbutnotall the samplesanswersall the questioncompletely.Thispaperalsoinclude some data fromsecondaryresearchfromsome journalsandarticlesaboutthe recentsituationinfashion businessretailerscompetition,the samplesof some businessstrategiesusedbyexistingfirms,discussionabout whichisbetterand etc.There are some specificmathematical andfinancial dataregardingthe operationof online salesandthe effectivenessof the decisions,thisreportonlytookthe general conclusionstosupportour findingsandasa setof the background’sissuesof thisreports. We assumedandconcludedthe resultsof the surveybycase studysupportedbyexistingarticlesasabased theory,itiseasilyconcludedbecausethere were pointsof opinionsfromthe samplesthatanswerthe fundamental questionsof thisreports. The discussionof everysurveyquestionincludessome graphicortable tosupportinterpretingthe multiple choice answers,andseveral paragraphsof summaryforthe short opinionanswers.The findingswere consumers constantlyspend$10-$50 for clothing,withpreference70% buyingin-store and30% online,the reasonsare vary, despite individual’spreference onconvenience orenvironmentbecausewhethertheyhave time ornottogo to the store,mostlybecause theyare able totouch andtry the productsdirectlybefore theyactuallydothe transactionwhichtheycannotdo inonline store,butthe rest30% may comingfrom the same consumer,because averagelytheypreferbothways.Basedontheiropinions,theyall agree thatunpopularlocal brandshouldhave online feature orservice importantlytoreachnew customer,astheyare not popular.Also,toreduce time
  • 4. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 4 because itissimplerif the retailerhasonline catalogue thencustomerwill have the optiontobuyonline aswell as goinginstore.Furthermore,onlinemarketingonsocial mediawhichhasdirectlinktothe website itself isfar the most effective way toattract or discovermore customers,asthere are some people thatmaybe not exposed by physical advertisement,whichmayleadtopossible internationalmarket.Soithelpsthe boththe consumer and the retaileritselftoreacheach other,alignwithseveral consumers’behaviorrevealedthattheyoften compare the price from online andoffline ordoingwindow-shoppinginstore asshowroom, andit suggestthatit ismore effective forthe retailertohave theirownonline service.The factthatbiggerpart of consumers’existing favorite brandhave online featuresorservice reallyhelpsthemastheyhave basiconline featureorservice that retaileratleasthad isa mobile app;online catalogue real timeornotwhichletthe customerpurchase online, may showthe store locationor the nearestone available (companywithmultiple branch),unpopularlocal brand ishighlysuggestedtohave thisaspeople maynotrecognize theirproductsorjustheardfromfriendswhichmake it highlydoubtedfornewcustomer,theymaynotknow the store locationorsimplyhave notime tovisitthe store. So itis highlysuggestedthatitisprofitable foroffline especiallyunpopularlocal brandretailerbuildonlineservice to reach online markettodiscovermore customer andmake iteasierforthe existingcustomer.Thustomake it effective,retaileralsoneedtoaddressthe problemandsolutionregardingtoprogressonlinemarket.The focus of thisstudyisclothingproducts,thusithas to match withone’sbody,withonline-purchasing,customerneedto be sure of themselvesandpredictbeforetheyactuallybuyit;how oftenthe productreceivedisextremelydiffer fromthe picture orthe descriptionsoffered;wrongsize,wrongcolor,badquality,oranythinglowerthan expectation.Thenonthe otherhandthere isadditional costforsendingthe product.Addressinghowconsumers’ make sure of themselvestobuyonline; theyreadreviews,commentsandtestimoniesfromthe previous consumer,some consumermayaskaboutreturn policyincase of wrongsize,coloretc.The solutionsthatmay solve ordecrease the problemwere;the retailershouldprovidegoodproductandservicesinthe firstplace,the retaileralsoshouldgatherall positive reviewsfrompreviouscustomer,providingaproperreturnpolicyandmake the website andadvertisementasattractive butstill simpleaspossibleasinternet-userare visual-oriented.
  • 5. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 5 1 Introduction Retailerbusinessnowadaysuse click-and-mortarbusinessmodel strategywhichthe businessrunthe physical store alongwith internetchannel since the populationof internet-userhasincrease rapidlyover decades, therefore itattractsmanyfirmsto do e-commerce,thusthe massincrease of businessretailerbothphysicaland online marketordual-channelare drivenbyconsumer’sfavorof convenience andchanginglifestyle of internet- usingas people isbackupby knowledge of technology.Thisbusinessmodel includesthe traditionaloperationof physical store retail andonline featuresfrom websitestomobile applicationthatenable the consumerstoview the productsand or buy itonline directly,show the neareststore locationandetc.Fromdepartmentstore to specialtystore,retailershave expandtheirexistingtraditionalstore tointernetchannel,butthere are still lotsof traditional retailerorsocalled bricks-and-mortarbusinessmodel strategy especiallyusedby local brand stores whichare alreadyina severe situation tobe replacedbyonline store.Inafashionbusinessretailer,big international companyasZARA,H&Msucceededthe practicesof clicks-and-mortarbusiness strategy;itisan inspirationforlocal brandstore toadopt such planto notonlyinternet-marketingbuttothe extentof e- commerce.Indeeditwill require abigchange andbudgetto transformthe businessprocessandmaynot necessarilyeffectiveforthe bricks-and-mortarcompanytodoso butthere are manycompaniesthatform alliance withexistinge-retailerorsocalled pureplay company,for example Toys RUs withAmazon.comtosell toysonline. Thisbusinessstrategy(click-and-mortar) practicesandresultsseemtosuggestanybricks-and-mortaror traditional retailersto change theirbusinessprocesstoaddinternetchannel,orshortlytransformintoclicksand mortar retailers.Concerningthe poorsituationof local brandmarketanditsmarketing,the purpose of reportwill discussandanalyze the reasonandbenefitof clicks-and-mortarbusinessstrategyandaddressthese following questions: 1. Shouldtraditional retailersexpandtheirmarkettoonline market,tothe extentof changingtheirbusiness process? 2. Is itprofitable forthemoronlybenefitthe customer? Thispaperonlyfocusto the fashionbusinessretailerthatthe productswere generally clothinggoods,regarding the problemshouldorshouldnotlocal brandstore adopt the changes.What itis meanby‘spreadtheirmarketto online’isbasicallyhavingonline marketingoradvertisinginthe firstplace,furthermore buildawebsitewith online catalogue,onlinepurchase (local orinternational) andnecessarilymake acooperationwith3rd party or othercompanyand to simplyhavingamobile application,thusthe scope of thisreportare only discussingthe effectivenessof clicksandmortarstrategyinconsumer’spointof view,linkedthemwiththe worthinessof changingthe businessprocessandfinallygatherall the ideaingeneral.We receivedthe necessary information throughan online survey asa directapproachto the consumerthat likelyusedthe internetinadailybasis,itwas conducted from38 samplesina particularrange of age and financial situation,therefore there are lotsof limitationsonthe researchsuchas too general opinionof the consumersbutnotconcerninghow the business processwill change andaffectthe company,the quantity,age range andoccupationof the sampleslimitedintoa particulargroup.
  • 6. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 6 Thisreportis organize asfollows; Inthe sectionafterthiswill showsthe reviewof the methodologyof the research includingthe survey questions,thirdly thisreportwill discussandanalyze everyquestionandanswerin the survey withbrief explanationandsome graphsof the data, and finally the conclusion, andsuggestionbythe author regardingthe findingsof the research. The necessityof thisreportandsurveywere tohelpbricks-and- mortar especiallybutnotlimitedtolocal brandfashionretailerstodecide waystoimprove theirbusinesstoflow withthe trendgloballywithconcrete opinionsfromthe consumer, withitsconclusionsandsome suggestions, fromvariousreferencesandexamples. To explainthe minimumquantityandqualityof the samplesandsurveyquestions;thisreportisconductedasan assignmenttofinalizeatrial fora survey,therefore there are proceduresthathave tobe fulfill andina simplest waypossible toconductthe surveyandreport the results. 2 Methodology 2.1 Research In orderto receive areasonable andgenuinedatadirectlyfromthe consumer,a primaryresearchwasconducted inMarch 2016 in one weekperiod.It isa simple formof online surveythroughawebsite SurveyMonkeyentitled ‘WHETHER OR NOTIT ISPROFITABLEFOR OFFLINEFASHION BUSINESSRETAILERS TO EXPANDTHEIR MARKET TO ONLINE”and setas the report’sfundamental question, with10questions of multiple choice andshortopinion answers.The linkof the surveywebsiteswasspreadthroughe-mailandsocial mediatoapproachthe samples,it isonlyrequiredfor20 samples,but itwasoccurred thatit receivedover38 responses.The targetsample was teenagerage between 17-25 yearsold,the reasonwere thisparticulargroupof age are the one who use internet on a dailybasis,concernmuchaboutfashionandstronglydrivenbythe changinglifestyle andtrends,andmore importantlyare the mostlocal brand or fashionretailers’ targetmarket,intheorythisgroupismostlystill supportedfinanciallybytheirparentssotheirbuyingpatternisstable andnotaffectedbyanyeconomic problems. Andasthisteengenerationare calledYandZ, social mediahassuch a significanteffectfortheirlife, theywantto buy thingstoappeal more,theywantto share the experienceof whathappen,orwhatand where theybuy a product.So unpopularorunexposedbrandorretail place wouldbe socalledanti-mainstreamwould attract themmore,thus the companyshouldreachthese customerthe online-way. Thispaperalso include some datafromsecondaryresearchfromsome journalsandarticlesaboutthe recent situationinfashionbusinessretailerscompetition, the samplesof some businessstrategiesused byexistingfirms, discussionaboutwhichisbetterandetc. There are some specificmathematical andfinancial dataregardingthe operationof online salesandthe effectivenessof the decisions,thisreportonlytook the general conclusionsto supportour findingsandasa set of the background’sissuesof thisreports. The author interpretedandconcludedthe results of the surveybycase studysupportedbyexistingarticlesasa basedtheory,itiseasilyconcludedbecausethere werepointsof opinionsfromthe samplesthatanswerthe fundamental questionsof thisreports.
  • 7. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 7 2.2 Survey Questions There are 10 questionsinthe surveyincludingmultiplechoice andshortanswers. The reasonbehindchoice of the questionswasbasedonthe author’sopinion,how toaskas simple andgeneral aspossible butalsocould addressthe questionrequired. 1. What is your age? itis to ensure the targetsample 2. How much do you usuallyspentfor clothing in a month? (inaud) - Lessthan $10 - $10-$50 - $50-$70 - $70-$100 - Above $100 It isto determine howmuchaveragelytheyspentmoneyforclothinginamonthto calculate if they are potential targetconsumer 3. About what percentage you preferbuying in store or online? - 100% in store - 50:50 - 100% online - 30% instore,70% online - 70% instore,30% online It isto determine howthe consumers’preferenceof theirbuyingpatterns 4. What is your reason behindthischoice? (relatedto questionno.3) - Price,comparisonbetweenoffline andonline - Time limits,the time consumeractuallyreceive the products - Convenience,the preferwayof doingthe buyingprocess - Environment,the surroundingsandsituationtheypreferwhilebuying - Additional costs,tax orshippingcosts(foronline) - Nothavingto queue,benefitof online - Able totouch and try the products,benefitof instore It isto determine theirreasonof buyingprocess’ preference inthe questionbefore 5. Do your favorite clothingbrands have online service to purchase the products? 6. Wouldyou agree that some unpopular local brand retailersshouldspread their businessonline to compete with online competitor?Why? Thisis the fundamental questiontoshow the consumer’spointof view regardingthe issues 7. Have you done these? - Go to retailers asa showroombefore purchasingproductsonline - Go to retailersandcompare the price withonline store To determine consumers’behaviorandthe benefitof havingowned internetchannel 8. Do you agree at leastretailershave a mobile app? (To purchase, show the nearest shop,etc.) 9. What are your biggestconcerns about buying products online? It isto showthe problemsaboute-commerce before actuallydoingsoaspreventact to avoidproblems.
  • 8. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 8 10. How do you make sure of yourselfbuyingproducts online? It isthe consumers’behaviortotrustonline productswithitssolutionof theirconcerns. The following section will discussed furthermore about the questions’ choice and its answers. 3 Results or Findings This section will analyze each of the survey questions to describe the idea of how it addresses the fundamental questions. Mind that not all the samples (38 in total) answer all the questions so the quantity for each question may differ. 3.1 Samples’ age The response receivedachievedthe targetpurpose of thisreport,mostlyteenagerdespiteof the gender, age between17to 20 yearsold.Asstatedbefore,the reasonsbehindchoosingthisparticularage group were theyare the one who use internetona dailybasis,concernmuchaboutfashionandstronglydriven by the changinglifestyle andtrends,andmore importantlyare the mostlocal brandor fashionretailers’ target market,intheorythisgroupismostlystill supportedfinanciallybytheirparentssotheirbuying patternisstable and notaffectedbyanyeconomicproblems. 10 27 1 samples'age 17 or younger 18-20 21-29
  • 9. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 9 3.2 Averageexpenditure for clothing in a month The chart showsthataveragelymostof the samples spent$10-$50 for clothingina month, thusit issignificant enoughtobenefitcompanyasmostlyteenagerspenttheirmoneytoappeal more onsocial media,asa competition,withintrendsthatalwayschanging,theywill stillalwaysbuynew thingstonotlookasordinary. 3.3 Consumer’s preferenceof in store vs. online 7 28 3 less than $10 $10-$50 $50-$70 average expenditure average expenditure 0 2 4 6 8 10 12 14 16 18 20 100% in store (A) 50-50 (B) 100%online (C ) 70%online 30% instore (D) 30% online 70% in store (E) samples online in store
  • 10. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 10 Thischart showsthe percentage of consumers’preferredplace topurchase clothingproducts. Mostlyconsumers’ still preferbuyinginstore butalsothe online-way,there isnoone fromthe sampleschoose 100% online,and mainlychoose 70% in store and 30% online,itshowsthat70% of the samplesactuallypreferbothwaysto purchase products. Related to this chart of preference, the next chart will show the reason of consumers’ choice 3.4 Preferenceoptions Option Samples Preference’s category (from chart 3.3) Price 22 A,B,D,E Time limit 12 A,B,E Convenience 14 A,B,E Environment 8 A,B,E Additional cost 4 A Not having to queue 4 B,D Able to touch and try the product 26 A,B,D,E Relatedwiththe dataabove we will lookagainatthe previouschart (3.3) of percentage whetherthey preferbuyinginstore andor online,thenlinkthemtogether,tosee whatisthe reasonbehindtheir preference andchoice of optionsavailable,they could choosemorethan oneoption above. The previouschart’scategoriesalreadylabeledbyalphabet,the lastcolumnshowswhichcategories of preferencechoose the particularreason/optioninthe firstcolumn Shortlyas example;categoryA whichispeople thatprefer100% buyinginstore because the price is worthit as theyable to touchand try the product withnoadditional costinonline shippingandetc., we acknowledge the meaningof the optionsasfollows; - Price,some people prefereitherinstore or offlineorbothso theycan compare - Time limits,the time customeractuallyreceive the products,mostly instore-preferred - Convenience,30%of the samplesfeelmore easyandconvenience tojustsitandorderfrom everywhere online and70%of themfeel it'seasiertogobuy instore and receive the product immediately - Environment, similarasconvenience - Additional cost, consumeroftenly avoidonlineshippingcost - Not having to queue, foronline-buyer - Able to touch and try the products, thisisthe mostlogical consumerbehaviorinpurchasingclothing products,and one of the biggestconcernto avoidonline store aspossible
  • 11. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 11 Withthisinformation,itshowsthe patternof consumers’basicbuyingbehaviorthatwouldaffect where shouldcompanyimprovetheironline service withthe factthat mostlyconsumers’still prefer buyinginstore but withbigportionof opportunitytobuyonline astheycouldn’thave the time togo to the store all the time. 3.5 Consumers’ existing favoritebrand availableness of online features/services It showsthat howin the competitiveenvironment;mostlythe consumers’existingfavoritebrands alreadyhave theirownonline featuresorservices,thuswhetheritispopularor not,havingonline features/serviceshelpalotto be well-knownandreachthe customer. 3.6 Consumers’ opinion aboutwhether unpopular local brand should spread their market to online to enter new competition with online business With38 responsesreceived,averagelycustomers’ opinionsregardingthisquestionare aligned.Theyall agree that unpopularlocal brandshouldhave onlinefeature orservice importantlytoreachnew customer,asthey are notpopular.Also,toreduce time because itissimplerif the retailerhasonline cataloguethencustomer will have the optiontobuyonline aswell asgoinginstore.Furthermore,online marketingonsocial media whichhas directlinktothe website itself isfarthe mosteffectivewaytoattract or discovermore customers, as there are some people thatmaybe notexposedbyphysical advertisement,whichmayleadtopossible international market. 3.7 Consumers’ buying behavior The 7th questionasksif the consumers’have done these 2things (canchoose both): 1. Go to retailersasa showroom before purchasingproductsonline –13 people 2. Go to retailersandcompare the price withonline store - 15 people It showsthat mainlyall the samplesdone thosethings,how customers’oftencompare onlinevs.offline,but insteadof usingretailersjustasa showroomtobuyfrom anotheronline store,itisbestforthe retaileritself has theirownonline catalogue sothe companycanreach bothways to match withcustomers’demand. yes, 32 no, 6
  • 12. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 12 3.8 Consumers’ opinion regarding retailer’s online feature The 8th questionsaskswhetherthe consumeragree if atleastretailerhasa mobile app;all the answersare yes,the basiconline feature orservice thatretaileratleasthad is a mobile app;online catalogue real time ornot whichletthe customerpurchase online, mayshow the store locationor the nearestone available (companywithmultiple branch),unpopularlocal brandishighlysuggested to have thisas people maynotrecognize theirproductsorjustheardfromfriends whichmake it highlydoubtedfornewcustomer,theymaynotknow the store locationorsimplyhave notime to visitthe store. 3.9 Concerns regarding online store Basedon previouschartof preference option(3.4),becauseitisclothing,it’sall abouthowthe productmatch and comfortwithone’sbody,mostlythe reasonthere isnobodychoose tobuy product100% online isbecause theyare notable totouchand try the product. Seeingonline competitionalone,orsocalledpure playbusinessstrategy,there are alreadyamassquantityof online store fromhand-made,fake brandstoreal luxurybrands, soitis hard to trustwhetherone is official ortrusted.But the biggestconcernare how oftenthe product received isextremelydiffer fromthe picture orthe descriptionsoffered;wrongsize,wrong color,badquality,oranythinglower than expectation.Thenonthe otherhandthere isadditional costforsendingthe product.Soretailer needtounderstandthese problemsand addresssome plans topreventthese fromhappeningin orderto gain consumers’trust. 3.10 Solution to trustissues The last questionasksevenwiththe problemsoccurringwhichleadtotrustissuesanddoubt regardingonline store;howconsumers’make sure of themselvesstill decide tobuyonline.The answerswere varying;mostlynew customerwill firstlysee the reviews andcomments fromprevious customerand theirtestimonialsaboutthe products, evenhow companydesigntheirwebincluding theironline advertisementare critical thingsof how topersuade customers;lame,oldortoo simple or amateurdesignwouldmake aperceptionthathow unattractive the websiteandsodoesthe product. Furthermore,some consumermayaskaboutreturnpolicyincase of wrongsize,coloretc. So relatedtothe previouscustomers’concerns aboutonline stores,theyalreadygiveideaof howto preventitfromhappening,despitethe retailershouldprovide goodproductandservicesinthe first place,the retaileralsoshouldgatherall positive reviewsfrompreviouscustomer,providingaproper returnpolicyandmake the website andadvertisementasattractive butstill simple aspossible. 4 Conclusion and Suggestion The concern that thisreportissuedwere whetherornotoffline retailerorso calledbricks-and-mortarCompany to spreadtheirmarket online tothe extentof changingtheirexistingoffline businessprocesstowhichbasically havingonline marketingoradvertisinginthe firstplace,furthermore buildawebsite withonlinecatalogue, online purchase (local orinternational) andnecessarilymake acooperationwith3rd partyor othercompanyand
  • 13. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 13 to simplyhavingamobile application.Withthe targetsamplesof teenagerandadultteenager,whichthe populationthatbackedupby the knowledgeof internet-usage foreverydaylife andimportantlytheirsocial life, an online surveywith10questionsconsistof multiplechoicesandshortopinionanswershadconductedand received38responses. The resultsinpreviouschaptershowsthatmostlyconsumersconstantlyspend$10-$50 for clothing,withpreference 70%buyingin-store and30% online,the reasonsare vary,despite individual’s preference onconvenience orenvironmentbecausewhethertheyhave timeornotto go to the store,mostly because theyare able to touchand try the productsdirectly before theyactuallydothe transactionwhichthey cannot doin online store,butthe rest30% may comingfromthe same consumer,because averagelytheyprefer bothways.Basedon theiropinions,theyall agree thatunpopularlocal brandshouldhave online featureor service importantlytoreachnewcustomer,astheyare not popular.Also,toreduce time because itissimplerif the retailerhasonline catalogue thencustomerwill have the optiontobuyonline aswell asgoinginstore. Furthermore,online marketingonsocial mediawhichhasdirectlinktothe websiteitself isfarthe mosteffective wayto attract or discovermore customers,asthere are some people thatmaybe not exposedbyphysical advertisement,whichmayleadtopossible international market.Soithelpsthe boththe consumerandthe retaileritselftoreacheach other,alignwithseveral consumers’behaviorrevealedthattheyoftencompare the price fromonline andofflineordoingwindow-shoppinginstore asshowroom, anditsuggestthat itis more effectiveforthe retailertohave theirownonlineservice. The factthatbiggerpart of consumers’existingfavorite brand have online featuresorservice reallyhelpsthemastheyhave basiconline featureorservice thatretailerat leasthadis a mobile app;online cataloguereal time ornotwhichletthe customerpurchase online,mayshow the store locationor the nearestone available (companywithmultiple branch),unpopularlocal brandishighly suggestedtohave thisas people maynotrecognize theirproductsorjustheardfromfriendswhichmake ithighly doubtedfornewcustomer,theymaynotknow the store locationorsimplyhave notime tovisitthe store. So itis highlysuggestedthat itisprofitable foroffline especiallyunpopularlocal brandretailerbuildonlineservice to reach online markettodiscovermore customerandmake iteasierforthe existingcustomer.Thustomake it effective,retaileralsoneedtoaddressthe problemandsolutionregardingtoprogressonline market.The focus of thisstudyisclothingproducts,thusithas to match withone’sbody,withonline-purchasing,customerneedto be sure of themselvesandpredictbeforetheyactuallybuyit;how oftenthe productreceivedisextremelydiffer fromthe picture orthe descriptionsoffered;wrongsize,wrongcolor,badquality,oranythinglowerthan expectation.Thenonthe otherhandthere isadditional costforsendingthe product.Addressinghowconsumers’ make sure of themselvestobuyonline; they readreviews,commentsandtestimoniesfromthe previous consumer,some consumermayaskaboutreturn policyincase of wrongsize,coloretc.The solutionsthatmay solve ordecrease the problemwere;the retailershouldprovidegoodproductandservices inthe firstplace,the retaileralsoshouldgatherall positive reviewsfrompreviouscustomer,providingaproperreturnpolicyandmake the website andadvertisementasattractive butstill simpleaspossibleasinternet-userare visual-oriented.
  • 14. NI PUTU DEA PRADNYA - 131603522 HBU102 COMMUNICATION ENVIRONMENT – REPORT ASSIGNMENT Page 14 5 References Bernstein,F.,Song,J.,&Zheng,X.(2008). “Bricks-and-mortar”vs.“clicks-and-mortar”:anequilibriumanalysis. EuropeamJournalof OperationalResearch,187(3),671-690. Doi: 10.1016/j.ejor.2006.04.047 Marketest.co.uk.(2016). Fashion shopping questionnaire.Retrievedfrom http://www.marketest.co.uk/market-research-questionnaire/99/clothing-accessories-fashion-shopping Online vsOffline –doretailersneedtouptheirgame to avoidcontinual lossestoonlinerivals?(n.d).Retrieved fromhttps://www.surveymonkey.com/r/?sm=Ks%2FefPV5gmgy9Ob7gOEN3w%3D%3D Schlossberg,M.(2016). One sentence revealshow teengenerationz iskillinggap,abercrombie,andj.crew. Retrievedfrom http://www.businessinsider.com.au/generation-z-is-killing-gap-abercrombie-and-j-crew- 2016-2 Steinfield,C.,Adelaar,T.,&Liu,F. (2005). Clickandmortar strategiesviewedfromthe web:acontentanalysis of featuresillustratingintegrationbetweenretailers’online andoffline presence. ElectronicMarkets, 15(3), 1-30. Retrievedfrom https://msu.edu/~steinfie/EM_2005.pdf