Download VTU MBA 3rd Sem 16MBAMM301-Retail Management RM Chapter 7 -Important Notes

Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAMM301-Retail Management RM Chapter 7 Important Lecture Notes (MBA Study Material Notes)

Retail audit and ethics in retail
Chapter 7
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
Social responsibility in retailing:
Social responsibility is an ethical framework and
suggests that an entity, be it an organization or
individual, has an obligation to act for the
benefit of society at large. Social responsibility is
a duty every individual has to perform so as to
maintain a balance between the economy and
the ecosystems.
Three issues:
Social issues
Green issues
Economic issues
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
Social responsibility in retailing:
Social responsibility is an ethical framework and
suggests that an entity, be it an organization or
individual, has an obligation to act for the
benefit of society at large. Social responsibility is
a duty every individual has to perform so as to
maintain a balance between the economy and
the ecosystems.
Three issues:
Social issues
Green issues
Economic issues
? Social issues :
- Ethical trading practices
- Strategic CSR
- Community investment
- Corporate governance
- Information sharing and colloboration
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
Social responsibility in retailing:
Social responsibility is an ethical framework and
suggests that an entity, be it an organization or
individual, has an obligation to act for the
benefit of society at large. Social responsibility is
a duty every individual has to perform so as to
maintain a balance between the economy and
the ecosystems.
Three issues:
Social issues
Green issues
Economic issues
? Social issues :
- Ethical trading practices
- Strategic CSR
- Community investment
- Corporate governance
- Information sharing and colloboration
Green issues:
? Promotion of green consumerism
? Increasing transportation fuel efficiency and
use
? Investment in sustainable technology
? Energy efficient green store
? Zero waste

FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
Social responsibility in retailing:
Social responsibility is an ethical framework and
suggests that an entity, be it an organization or
individual, has an obligation to act for the
benefit of society at large. Social responsibility is
a duty every individual has to perform so as to
maintain a balance between the economy and
the ecosystems.
Three issues:
Social issues
Green issues
Economic issues
? Social issues :
- Ethical trading practices
- Strategic CSR
- Community investment
- Corporate governance
- Information sharing and colloboration
Green issues:
? Promotion of green consumerism
? Increasing transportation fuel efficiency and
use
? Investment in sustainable technology
? Energy efficient green store
? Zero waste

Consumerism in retailing:
Consumerism is a social force within the
environment designed to aid and protects the
consumers by exerting legal, moral and
economic pressures on business
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
Social responsibility in retailing:
Social responsibility is an ethical framework and
suggests that an entity, be it an organization or
individual, has an obligation to act for the
benefit of society at large. Social responsibility is
a duty every individual has to perform so as to
maintain a balance between the economy and
the ecosystems.
Three issues:
Social issues
Green issues
Economic issues
? Social issues :
- Ethical trading practices
- Strategic CSR
- Community investment
- Corporate governance
- Information sharing and colloboration
Green issues:
? Promotion of green consumerism
? Increasing transportation fuel efficiency and
use
? Investment in sustainable technology
? Energy efficient green store
? Zero waste

Consumerism in retailing:
Consumerism is a social force within the
environment designed to aid and protects the
consumers by exerting legal, moral and
economic pressures on business
Need for consumerism:
? Less literate and aware population
? Economically weak consumer
? Vast variety of goods and services
? Deceptive advertising
? Feedback for business
? Responsive environment
FirstRanker.com - FirstRanker's Choice
Retail audit and ethics in retail
Chapter 7
? Study of a selected sample of retail outlets,
provided as subscription-based service by
market research firms. Retail-audit service
providers gather information on a brand's
sales volume, sales trends, stock levels,
effectiveness of in-store display and
promotion efforts, and other associated
aspects.
Categories:
? Retail audit - Sales to final consumer
? Wholesale audits ? product movement from
warehouse to retailers
Types of Retail audit:
? Retail process audit
? Mystery customer audit
Steps in retail audit:
? Determining who does the audit
- Company audit specialist
- Company department manager
- Outside auditor
? Determine when and how often he
audit is conducted
? Determine areas to be audited
? Develop audit forms
? Conduct audit
? Reporting the result
? Management?s response to an audit
Problems in conducting a retail audit:
? Lack of cooperation
? Incomplete and inadequate data
? Consumers behaviour
? Expensive process
Customer audit: Describing consumer behaviour
in retailing:
? Areas of customer audit-
- Market segmentation
- Product
- Pricing
- Distribution strategy
- Promotion strategy
- Product position
- Customer satisfaction
Ethic, social responsibilities and consumerism
? Ethic ? a set of moral principles, especially ones
relating to or affirming a specified group, field,
or form of conduct.
? CSR ? decision of firm to conduct business in the
interest in society as a whole as well as its own
interest
? Consumerism - the protection or promotion of
the interests of consumers.
Unethical practices of retailer:
? Duplicate if original products
? Inadequacy and inefficiency in warranty offering
? misleading and deceptive advertisement
? Creation of artificial scarcity
? Defaming competitors
? Lower the dignity of women
? Selling information about the customer etc..
Decision areas :
? Ethical behaviour in buying merchandise
- Product quality
- Souring
- Slotting fees
- Bribery
? Ethical behaviour in selling merchandise
- Product sold
- Selling process practices
Ethical behaviour in the retailer ? employee
relationship
? Misuse of company asset
? Job switching
? Employee theft
Ethical Norms and values for retailers:
? Responsibility of the retailers
? Honesty integrity and quality
? Rights and duties in the retailing exchange
process
? Organizational relationship
? Conduct business as to build long term
relationship
? Avoid harmful tactics
Social responsibility in retailing:
Social responsibility is an ethical framework and
suggests that an entity, be it an organization or
individual, has an obligation to act for the
benefit of society at large. Social responsibility is
a duty every individual has to perform so as to
maintain a balance between the economy and
the ecosystems.
Three issues:
Social issues
Green issues
Economic issues
? Social issues :
- Ethical trading practices
- Strategic CSR
- Community investment
- Corporate governance
- Information sharing and colloboration
Green issues:
? Promotion of green consumerism
? Increasing transportation fuel efficiency and
use
? Investment in sustainable technology
? Energy efficient green store
? Zero waste

Consumerism in retailing:
Consumerism is a social force within the
environment designed to aid and protects the
consumers by exerting legal, moral and
economic pressures on business
Need for consumerism:
? Less literate and aware population
? Economically weak consumer
? Vast variety of goods and services
? Deceptive advertising
? Feedback for business
? Responsive environment
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This post was last modified on 18 February 2020